Owning one Visalia rental property is a great way to earn consistent rental income and long term returns. For real financial rewards, however, a growing investment property portfolio is the best way to go.
When you’re acquiring new properties or leveraging what you already own, make sure you understand the advantages and challenges of owning several properties and increasing the size and scope of your portfolio.
As we consider the strength of your portfolio, bigger is usually better, but you want smart growth that sets you up for success.
Here’s what you need to consider.
Establish Short Term and Long Term Investment Goals
When growing your portfolio is part of your investment plan, make sure it fits in with your existing goals.
Understanding what you hope to accomplish will help you set timelines and budgets. You’ll be more focused in what you’re looking for as you grow your portfolio. The real estate goals you set as a new investor have likely shifted. Make sure you’re checking in with you plans every time you buy a new property or make a change to your existing portfolio. Everything should work together.
Evaluate the Local Rental Market
Make sure the Visalia rental market supports your plans for growth. Take a look at the current inventory. If there is very little available, it’s a great time to buy new properties and rent them out so you can meet the demand. If there are a lot of vacant rental homes and demand has dropped, you might have to be more creative in your plans for portfolio growth.
Get data that reflects what types of homes are renting, and at which price points. If there are a lot of multi-family units on the market, for example, you might want to look for single-family homes. If vacancy is a concern in the current market, buy an apartment building so there’s less risk.
Make decisions that will keep you competitive and profitable.
Visalia Rental Property Condition
Before you grow your portfolio by adding new properties to it, have a Visalia property manager give you an objective idea about how much money you’ll have to invest before it’s ready for the rental market. At Equity Group, we do a full inspection of the property. We’re looking for evidence of age or deterioration. We’ll estimate what the utility costs will be, and we’ll talk about what you can expect to earn, what kind of expenses you’ll face, and how your ROI will look after financing.
Surround Yourself with Experts
You won’t be able to grow your real estate investment portfolio by doing everything yourself.
Instead, surround yourself with experts who can provide the tools, resources, and risk management that you’ll need when you’re thinking bigger. Talk to a Visalia property manager, a reliable broker, maintenance vendors and contractors, insurance agents, and your CPA or tax accountant. Even if you’re an experienced investor, there’s likely a lot you don’t know or you’re not prepared for. Your professional partners can help.
We love working with investors at every level of their real estate careers. Contact our team at Equity Group for help making your investment portfolio more profitable.