Interested in purchasing investment property in Charleston? There are a number of reasons as to why rental property is preferable to flipping houses or more traditional investments (such as the stock market), and we recently touched on a few of those. And while real estate is one of the best investments you can make, it is important to shop around and crunch some numbers before taking the investment property plunge.
Things to Consider When Buying Rental Property in Charleston
- Location – Students are not the only renters in Charleston. Consider transitional areas downtown and off the peninsula that are convenient to Boeing, local hospitals and other large employers. Good schools and public amenities should also be kept in mind. Increasing property values and rental rate trends are important factors in evaluating location. Need help calculating rental value? We can help! Click here to request a no-obligation rental analysis.
- Size – A 1-3 bedroom property is easier to rent than a house with more than 3 bedrooms, and smaller properties ultimately promise a much higher return (more rent per room).
- Property Condition – Purchasing a well-maintained home will help you to avoid costly repairs down the road and may help to minimize vacancies. HVAC systems and roofs are among the most expensive and problematic maintenance issues. A professional home inspector will reveal whether or not a potential investment is up to snuff.
- Operating Expenses – You can accurately determine the value of a property (and ultimately how much you are willing to pay for it), but to do so, you need to fully understand your operating expenses (property taxes, insurance, property management services, maintenance and emergency repairs). A seemingly good real estate deal can leave you very little in rental income if operating expenses are not factored in.
If you do purchase a rental property in Charleston, we hope that you will give us a call. We are confident in our ability to find a qualified tenant for your property. As such, our property management fees are deducted from rent collected. We do not charge management fees on unoccupied properties. Please take a moment to review all of our policies and frequently asked questions, and contact us when you are ready to learn more.