Real estate investing can be a lucrative and exciting endeavor, especially when you invest in markets that are rising — or are going to rise — in value.
Featuring a vibrant and diverse culture, real estate investments in Northeast Ohio are growing in popularity. And thanks to ongoing redevelopment in the area and a diverse economy valued at $170 billion, it’s one of the best cities in the country for real estate investment properties. Because of this, it’s easy to see why people are flocking to Northeast Ohio and snapping up those real estate investment properties.
But perhaps you’re already in Northeast Ohio and want to branch out and invest in other markets. Even the most novice real estate investors have heard the adage of “location, location, location.” When purchasing your first investment property, be sure to study the surrounding area, paying close attention to property taxes, crime rate and nearby schools. Also, the closer the property is to malls, parks and restaurants, the more likely you’ll be to gain quality renters.
Here are other things to consider when looking at real estate investment properties outside of your local market.
The Right Location
The neighborhood where you’re going to buy property factors heavily in the success of the investment. If renters don’t find the area appealing, they won’t lease from you. People want to live and work in vibrant, growing areas. Things to look for in a good neighborhood include areas where there’s little or no crime, good schools, convenient access to shopping and dining options, water access and views, and access to public transit and/or freeways.
The Right Property
When purchasing your first real estate investment property, buying a “fixer-upper” can be a great option, since you can usually get the property at a lower cost. However, you need to be fully aware of what problems need addressing, and ensure that you have enough capital to solve those problems. If you’re realistic about what it will take to get the property up to snuff (time, materials, labor costs, etc.), you can get a good picture of whether or not it’s a good investment. Cosmetic upgrades are generally easy, inexpensive fixes. But if the property needs major structural repair, you may better off avoiding the purchase altogether.
The Right Tenants
The right tenants are key to successful real estate investment. It’s no easy task, but you must find tenants who will be reliable, treat the property as if it were their own, and, of course, pay the rent on time. Be sure to screen and fully vet all potential tenants. Check their credit, run criminal background checks, contact current and past landlords, and contact their current employer. Get all the information you can so you can make the right decisions.
The Right Team
Having an experienced and knowledgeable team will be important in any property investing decision. A real estate investment firm can handle all the complicated paperwork involved in purchasing a property. When you partner with them, it is like having your own personal real estate investment adviser. It also means that you won’t have to be called at midnight to fix something, because the property manager will send out their own maintenance team.
A good real estate investment firm will also know the local market and help you make the right choices. From this knowledge, you can make faster decisions and purchase more properties with a reasonable amount of certainty.
Smartland is Northeast Ohio’s largest turnkey real estate investment firm. Our team combines financial savvy with expertise in property management to help clients identify and invest in alternative investment vehicles that have strong growth potential.