As a real estate investor in the Salt Lake City area, you likely want to add more properties to your real estate portfolio if you intend to grow.
- How do you get started?
- Is it as simple as buying Salt Lake City homes for sale and finding someone to live there?
Yes, you can buy any house you see for sale on the real estate market—but not every Salt Lake City home will become an excellent (and profitable) rental property! Many homes don't make good rental properties: investors need the insight that seasoned Salt Lake City property management provides to determine properties with potential for considerable cash flow.
What's the best way for property owners to start adding more rentals and grow a portfolio? Follow these tips from our expert, full-service property management team here at Reeder Asset Management.
Never add a property that 'seems' good without plenty of research first. Have you seen the movie 'The Money Pit?' While today, that house is no longer a disaster, it seemed too good to be true in the film—and it was. It started falling apart immediately after the sale.
- Even if a potential rental home is in excellent condition, investors need to research the location, other rental homes, competitors in the area, and review the 'comps' of every property.
- A beautifully renovated rental property might not appeal to renters if it's not in a desirable location.
- If the property doesn't have the right features, and you can't charge enough rent to generate a profit over the monthly property expenses, it won't be a valuable addition to your portfolio.
Protect Your Business With the Right Entity
The more assets you add to your real estate portfolio, the greater the liability you carry. Without the right business protections, you risk losing income and the ability to rent properties in the Salt Lake City rental market if something goes wrong.
- Most real estate investors place their rental properties into a legal business entity.
- This separates your investment income and assets from your personal income and property.
- In case of a lawsuit, your personal assets won't be at stake as long as your rental property business is separated by an LLC (or another business entity that makes sense for your portfolio).
Work with your attorney and Salt Lake City property management company to find the best business entity to protect your investments and income as a business.
Start With a Winner
If you don't have a lot of capital to get started, it's tempting to go for a cheap property that requires a lot of work to get it rental-ready. Unless you have a foolproof plan to renovate a property with renters in mind without a significant construction budget, a property in disrepair or a poor location isn't the best way to enhance or grow your portfolio.
- Be smart and pick a winner! Choosing a Salt Lake rental property that's poised for success helps you kickstart your growth with an excellent experience.
- A bad experience or money-draining property can derail your excitement to build a portfolio and quickly deplete your financial resources.
- An expert property manager can help guide you to the right properties. We have the research and analysis know-how to determine if a property can generate enough income for you—or if you should walk away and keep looking for a better investment.
Trying to make a bad property work for you can lead to wasted time over a frustrating effort. Starting with a positive experience and avoiding bad advice can help guide you to more success as a rental property owner!
Take It One Property at a Time if You Have To
Duplexes, triplexes, and small apartments are one of the best ways to add wealth to your portfolio when you're a small-scale investor. However, growing your Salt Lake real estate portfolio doesn't mean you have to do it all at once. Many investors grow slowly and steadily, adding each new property when they find the right fits for their portfolio.
- Remember: real estate investing is the long game! You're building long-term wealth over time.
- Building too quickly can leave you without the tools and expert partners you need to research successfully, rent, and manage every property in your portfolio.
- One bad or mismanaged property can drag the rest of your portfolio down into unprofitability.
Take your time and watch your success grow! As you get the hang of what good properties look like and how to work with the right professionals and expert property management services, growth becomes manageable and sustainable.
Let a Property Manager Help Sustain Your Growth
Adding more properties means more income—when you manage each property to success. Empty rentals don't make any money! When you're ready to grow, make sure you have the right insights and an expert Salt Lake City property management company to help you choose the best properties, keep them occupied, and manage them to profitability.
The Reeder Asset Management team is here to help. We enjoy guiding real estate investors towards the right new properties to experience more investment wealth. From researching properties to finding renters and collecting the rent, our job is to make sure your Salt Lake rentals are a success!
These are just some of the ways Salt Lake City property managers can help you grow your portfolio when it's time to enjoy more hands-free wealth. To learn more, download your copy of our free resource, Real Estate Investing: How to Grow Your Portfolio.