6 Ways to Turn Your Long-Term Investment Property Into Success
Property owners and real estate professionals looking to stay in the rental property business long-term definitely have their work cut out for them. However, there are many tried and true ways to turn a long-term investment property into a success.
If done correctly, this industry can yield you fantastic returns, plenty of positive cash flow to supplement your income, and even become your escape from the 9-5 corporate job with the decision to make investing in rental properties your full-time job.
Finding out how to become a successful property owner does not have to be difficult. In fact, we have put together for you some of the best ways to stay ahead of the game when it comes to long-term property investing so that in the end find that desired success.
Top 6 Ways to Turn a Long-Term Investment Property into a Success
1. Learn Your Craft
One of the best ways to turn a long-term investment property into a success is to become an expert in the fields of real estate and investing. If you are looking to stay in the industry for a long time, consider becoming a real estate agent.
With flexible schedules, great income for those who work hard, and plenty of investment opportunities, you can really break into the heart of real estate as an agent. In addition, the knowledge and experience you gain applies directly to your own investment properties and can make you that much more successful.
2. Keep it Objective
When dealing with your own hard-earned cash, it is difficult not to let your emotions get the best of you sometimes.
No one wants to find out they made a poor investment decision, lost money, or missed an amazing opportunity. However, by staying objective and treating your long-term investments like a business, you are more likely to make solid decisions that will yield success over time.
Don’t hang on to the first property you invested in when you were twenty simply because it has sentimental value. If it is costing you money, is hard to lease, or simply doesn’t line up with your future goals, let it go and focus instead on making more profitable long-term investment decisions.
3. Always Have a Plan
Sure, what you have in mind long-term may not always work out the way you want it to. However, having a plan of action will make for better investment decisions that are likely to last.
Here are some things to include in your rental property business plan:
- Your goals, both short and long-term, and how you will achieve them
- Strategies for investing in properties, including additional education you will receive, research you will do on the current market, and networking opportunities you can explore
- Your “perfect” market so you know exactly what type of property you are looking to invest in
- The status of your finances and a step-by-step outline of how you will invest in a rental property, how you will manage it, and how you plan on affording the maintenance required as tenants move in and out over time
- Your team and the roles they will play (if you are looking to make long-term investment properties your main source of income and wish to have an extensive portfolio that requires assistance from others)
- A backup plan because, remember, things do not always go the way you hoped
4. Research the Market
As part of your business plan, it is crucial you conduct sufficient research about the market you are about to invest in, especially if you’d like to keep this investment property for years. Here are some things to look into before purchasing a property:
- Tenant spending habits in the area as they relate to income statistics
- Unemployment rates, educational statuses, and basic demographics
- Regional information, such as nearby schools, shops, and entertainment
- Any growth plans for the area that may affect your investment in a positive or negative way
- Current rent trends of similar properties
- Amenities that tenants in the region are looking for
- Federal, state, and local rules/regulations/laws related to rental property
By understanding the market, you will be able to make better purchasing decisions.
5. Network with Industry Professionals
Knowing someone in the real estate industry can help you reach success at an earlier stage in the investment process and can help you maintain that success long-term. Get to know real estate professionals, investors, bankers, accountants, attorneys, and even tenants as they relate to your rental property business. Industry professionals can provide insight into what works, what doesn’t, and what tenants are looking for when leasing a rental property.
6. Get an Accountant
Part of having a long-term investment property means constant balancing of finances.
The only way you can make a long-term investment property a success is to stay in the green with positive cash flow.
This does not mean you won’t lose money at some point during the course of owning the rental property; it just means you need to stay ahead as much as possible.
Many property owners do not understand the complexities that come with purchasing an investment property, leasing it out to tenants, and the tax implications that come with owning a rental. Thus, employing an experienced accountant to manage your books and ensure you are keeping everything in line will guarantee long-term success.
Though the initial idea that investing in real estate property is easy, it is a long road between that idea and reaching long-term success. Luckily, there are actionable tips you can follow as you begin your journey into the rental property business that will guide you to your goals of prosperity.