There are tremendous opportunities for cash flow and real estate investment in Charlotte, NC, and you’ll find several good reasons to invest here.
Favorable Home Prices
Charlotte properties are affordable, especially when you compare them to real estate in other east coast cities. You can find rental properties for less than $100,000. If you don’t mind fixing up an older home, you can even dip below the $50,000 threshold. If you’ve spent any time in New York, Boston, Baltimore, or similar places, you’ll be astonished at the Charlotte market. You can find desirable rental homes in all price ranges. Many investment companies and hedge funds have been buying up properties in the Charlotte area recently. They understand the value they are gaining.
Purchase Price to Rental Price Ratio
You’ll be able to create cash flow with your Charlotte investment property because the price of property compared to rental prices is favorable to landlords and investors. When you pay a certain amount for a property, you need to look at the amount of rent you’ll be able to collect. The best opportunities are in places like Clanton Park, Revolution Park, and Uptown Charlotte. Even in communities where you’ll pay more for a property, you’ll gain value in appreciation a lot faster.
Your goal should always be for at least a 10 percent return. If you buy a house for $100,000, you’ll want to earn at least $10,000 per year in rental income. If you buy a house for $50,000, your goal will be to charge a minimum of $500 per month. While you’re estimating your return, remember to factor in costs such as turnover, maintenance, and vacancy.
Property Management Services
Investors enjoy purchasing the property and reaping the rewards, but they don’t always want to manage the homes or deal with tenants. When you hire a professional property manager, you’ll be able to rely on someone else to handle the day to day operations of your rental home. Your investment will benefit from the knowledge, resources, experience, and protection that a property manager can provide.
Properties to Consider
If you find a great opportunity to buy a tenant-occupied home, consider the benefits. You will likely be acquiring a long-term tenant and the property will probably be priced well below others on the market. Most investors are looking for new construction or newer homes built after 1990. Your ideal investment is a three-bedroom home with one bathroom, built in the 1960s. You’ll enjoy tenant retention, cash flow, and a great ROI.
For help in locating a great investment, contact Alarca Property Management.