You could become a real estate mogul by growing your real estate portfolio and buying more property in Atlanta. However, it is wise to first get familiar with what it means to invest in real estate (and manage rentals) to get your money’s worth out of your portfolio!
Atlanta property management and real estate investments are tough games—but worth it! It takes skill, experience, and knowledge to succeed as an investor. In this article, we'll share five keys to developing a successful real estate investment portfolio.
1. Start With Research
It is vital to research the market to make good decisions concerning real estate investments in the Atlanta area. Extensive knowledge of the market and what local renters want will help you determine the next steps in your investment decisions.
Start with information about a rental property's location. Sometimes overlooked, the site of your properties can make or break a rental's success. Location affects rental rates and vacancy rates. Quality residents don't want to live in high crime areas or locations that make it difficult to get to work, retail, or entertainment. Learn about each area and what makes it attractive to prospective tenants. Don't underestimate the little details, such as the school districts and amenities like parks and recreation.
In addition to location, think about the costs of buying and maintaining a property and if the location and quality of the rental will allow you to generate enough rental income to cover expenses for your Atlanta homes for rent. Work with a property management company to conduct a comparative market analysis to analyze potential investments and their returns.
2. Choose the Right Business Entity
The real estate industry has its fair share of lawsuits between property owners and tenants. To safeguard yourself from the financial risks associated with legal cases and limit your liability, you should consider establishing a legal entity to protect you and your real estate investments.
Many property managers form a limited liability company (LLC) to shield from liability, protect the equity in their investment properties, and provide a mechanism for separating personal finances from an Atlanta property for rent. As your portfolio grows, make sure each property has the legal protection of a business entity.
3. Avoid Extreme Fixer-Uppers
It could be tempting to invest in low-cost Atlanta area homes to build your investment portfolio rapidly. Such homes are far less expensive to acquire, but there is a reason. Usually, they are in poor condition and will require costly renovations to get them rental-ready.
While you should never dismiss fixer-uppers altogether, proceeding with caution is best. Not every home will be a valuable addition to your real estate portfolio. Some properties are money pits. Buying them will not only make you lose money, but the experience may put you off real estate investing.
It is essential to find an affordable property that won’t require many renovations. A cheap home with good bones that needs cosmetic fixes at a reasonable price may still prove to be an excellent investment. Consult a local property management company to inspect a home prior to purchase and help you estimate potential renovation costs.
4. Add To Your Portfolio One at a Time
Growing a successful portfolio takes time! While opportunities may come up to buy more than one property at a time, it's often ideal to add one property to your investments at a time. It is important not to overwhelm yourself or your resources to successfully onboard and manage each new rental.
Always run the numbers to determine which route to growing your real estate portfolio works best for you. If you are able to buy many homes at once and support their success with a rental management company and their experience, it's possible to grow your portfolio quickly!
5. Hire a Property Manager
Hiring a property manager is the best practice for building a portfolio and maintaining your properties. Reputable property management firms, like Renters Warehouse Atlanta, invest skilled professionals, expertise, technology, and resources to help property owners manage their investments.
Property management companies are experts in all aspects of real estate investments. These professionals can assist with building portfolios, leasing, tenant screening, repair and maintenance, and much more to make sure your portfolio meets your long-term goals.
Atlanta Property Management is The Best for Your Portfolio Growth!
Partnering with a professional property manager is the best solution for successful real estate investment portfolio growth! We can help you find new rentals with excellent potential, then manage them for your success. The experts at Renters Warehouse Atlanta understand what it takes to generate a high return on investment (ROI) and how to help investors make smart decisions for growth. We know the industry trends in the Atlanta Metro area and will advise you on the best places to invest. When you're ready to purchase your next rental property, reach out to learn more about how we can help!
For more information and building a successful portfolio, download our free resource, "Real Estate Investing: Grow Your Portfolio."