Pocatello rental properties make excellent investments. Most investors understand the benefits and the rewards, but it still feels a bit overwhelming to buy your first property.
If you’re just starting out as a real estate investor, the best thing you can do to set yourself up for success is to surround yourself with experts. Learn from the mistakes others have made so you don’t make those same mistakes yourself.
We work with rental property owners at every stage of their investment career. We help identify acquisitions, we look for new opportunities, and we provide comprehensive, full-service Pocatello property management and leasing services for your entire portfolio.
We manage more than 750 properties, so we know what it takes to find one that makes an excellent rental investment. Here are some of the things you can do to make the process less stressful and more profitable.
Establish Your Investment Goals
Before you begin your search for the perfect rental property, you need to have clear goals and expectations. Without a set of written investment goals, you may find yourself buying anything that comes along. Instead, you want to make strategic decisions that fit the profile of your ideal investment property.
Make sure you know why you’re investing. Are you interested in short-term cash flow or long-term appreciation? These answers will help you decide which neighborhoods will work best for you and what type of property you want to focus on acquiring.
Investment goals should be clear, concise, and attainable. Write them out and review them frequently to make sure you’re on the right track.
Know Your Numbers and Do the Math
The financial part of buying investment property is especially stressful. How will you pay? What do you need to put down? What’s a good interest rate?
A lot of investors pay in cash, but interest rates are so low right now, leveraging your investment with a loan is a good idea. A large down payment isn’t required in the Pocatello market, but if you’re buying your first property, you’ll likely have to have some cash up front. Once you begin to grow your portfolio, you can add more assets by leveraging what you already own.
You’ll need to have some solid financials that demonstrate what you expect to earn and what you’ll likely spend. Understanding your numbers is the only way you can determine whether a potential property will earn the money you need it to earn.
Focus on the rental value and the expenses. Some of those expenses will be fixed. You know what your mortgage payment is going to be every month, for example. Other expenses will be variable, such as maintenance on the property and vacancy costs. The more prepared you are financially, the less stress you’ll feel during the process.
One thing that may keep you calm is realizing that rental properties are low risk investments. If the stock market and other investments make you nervous, you’ll be happy to know that the returns on your real estate will be fairly steady. Stock values can fall or disappear but real estate is a tangible investment and it isn’t going anywhere.
Professional Pocatello Property Management
To successfully invest in rental property without the frustration and hassles that can sometimes hinder the buying process, you’ll need some good professional help. Look for lenders and brokers who will work with you and help you navigate the financial process. A good real estate agent will help you negotiate the asking price of a property you want.
Hiring a professional Pocatello property manager will save you time and money. The experience, advice, and income provided by property managers provides peace of mind and freedom. You’ll know how much rent a potential property will likely earn and how much you’ll need to invest to get it ready for the rental market. You can rely on your property manager’s experience to understand the local tenant pool and the property management trends that are currently driving the rental market.
Property managers can also provide some help in growing your portfolio and creating some independence through the wealth generated by your rental properties. Many people who start with one investment property go on to invest in more properties and even become full-time real estate investors.
We can help you have a stress-free investment process, even if this is your first property. When you’re ready to talk, contact us at Jacob Grant Property Management.