Financing: Financing for an investment property is different than financing for your primary residence. It is important to speak to a mortgage lender in order to get pre-approved.
Accounting: We also recommend that you reach out to your tax advisor for the most strategic planning for deductions that will provide the most benefit.
Market Research: Before purchasing an investment property, it’s very important to do your research! There are so many different market opportunities for investors, but if you are buying a property you want to be sure you can make the most return on your investment (ROI). Your Liz Moore Real Estate Agent and our Property Management Team will be happy to provide market analysis and recommendations to support you.
To ensure you make the most ROI, they will recommend researching and considering the following questions:
- What is the average rental income for my area?
- What kind of amenities can I offer my tenants?
- Is my property conveniently located?
- What is the school system?
- If in an association, what are the HOA fees and what is covered?
Speak with a Reputable Property Management Company: A lot goes into managing a rental property, so hiring a reputable property management company is a MUST. We understand the challenges that can sometimes go into owning a rental property, so here are some things we do to assist our owners:
- Marketing the Property
- Tenant Screening
- Repairs & Surveys
- Rent Collection
- Financial Reporting
- Eviction Protection
Maintenance Reserves: Regardless of where/what you buy, be sure to have at least 3 months of rent reserves in the bank so that unexpected expenses don't have you in a pickle.
While we are all eager for you to get started on this exciting rental journey, it’s important to understand the risks of owning a rental property so you can be prepared or prevent them. Some risks include natural disasters, vacancies, economic downturn, and unexpected maintenance. These are all things that can prepare for with the help of your trusted property manager. At Liz Moore and Associates we manage rentals in Newport News, Williamsburg, Hampton, Richmond, and Gloucester so we can help you mitigate those risks and bring in some extra income.
Owning a rental property can be a lucrative investment when you have the right knowledge and resources backing you up. Contact Virginia Payne (757-345-0436) today to learn how to get started.