If you have decided that investing in a Charleston rental home makes good financial sense, we’re glad you’ll be in this market. You have a terrific opportunity to build some long term wealth and even earn some short term cash flow.
So, if you’re ready to buy that rental property – where do you start? What do you do first?
We have a lot of experience helping investors find valuable Charleston investment properties. Take a look at the important things you need to consider when you’re ready to buy.
Start with an Investment Checklist
Charleston and the surrounding areas have a lot of great rental properties waiting for investors like you. But, don’t be over-eager. Instead, taken an intentional and strategic approach. Put together a list of the things you need to make a smart investment decision.
If you’re a new investor, we recommend a few specific requirements when you’re looking for a great rental property:
- Make sure the home is in good condition. Some investors specialize in buying distressed properties and fixing them up for the rental market. That may be part of your investment strategy in the future, but on your first property, find one that’s already in good condition.
- Research the location. Make sure it’s a desirable location because the best tenants will be looking for great schools, shopping, and commuter routes.
- Consider property size. If you’re looking for a single-family home, you’ll have other considerations like yard space and the number of bedrooms and bathrooms. If you’re looking for multi-family properties, have an idea of how many units you’d like. Evaluate how many of them are occupied.
Choose a Charleston rental property that fits your investment goals.
Crunch the Numbers and Finance Correctly
It’s also important to make sure the numbers add up when you’re looking for an investment property. Evaluate the cap rate and look at the cash flow projections. Calculate how much rent you expect to earn and look at what the vacancy and turnover rates are. Before you begin looking for properties, you should know how much cash you’re willing to put down and how much you want to leverage. Figure out your financing and make sure you have relationships in place with mortgage brokers, lenders, and insurance professionals. If you don’t know where to turn for those services, ask for referrals.
Searching for Investment Opportunities
Once you have a good criteria in place, it’s time to go shopping. Networking will help. Let people in your circle know that you’re looking for real estate investments. Word of mouth is a powerful tool in the local Charleston market. If there are local real estate clubs or investment associations, join them. Check the Multiple Listing Service (MLS) as well as Craigslist and other sales sites. Develop relationships with real estate agents, brokers, and property managers. These professionals work with properties every day, and they know where to find good deals and how to measure the potential of an investment.
The best Charleston rental properties will be in good locations. They’ll be in move-in condition and attractive to potential tenants. We’d love to help you evaluate potential investments. Contact our team at Charleston Home Rentals today.