Having more investment properties in the Salt Lake City area means you can generate more passive income— but the income is only 'passive' if you aren't doing the work to generate it!
Growing a real estate investment portfolio happens when investors buy and maintain more rental properties. However, with more properties comes more work to provide solutions for maintenance issues, find high-quality renters, handle rent collection, and maintain a profit. When you become overwhelmed at the amount of work that comes with a more extensive portfolio—but you still want that income—it's time for expert help in Salt Lake City!
You shouldn't be forced to 'stay small' if adding a property seems unmanageable as a Salt Lake City investment property owner. If you can't do it all—or growth isn't happening the way you want—consider these tips from a professional Salt Lake City property management company!
Choose Quality Wholesalers or Fix-and-Flip Opportunities
A larger portfolio and more income require choosing the best investment properties in the Salt Lake City area. You can certainly add 'any' property that hits our rental market, but not 'every' rental property is a good idea for your portfolio. Depending on how fast you want to grow, you might feel like you need every property you see to grow your portfolio at the size and speed you want. However, poor quality investment properties can work against your growth.
- Work with high-quality wholesalers to find properties with excellent investment potential.
- Choose reputable fix-and-flip investment partners to buy homes after renovations or upgrade a wholesale property that needs some work to become rental ready.
- Beware of poor-quality renovations or wholesalers that offer prices that are too high for single-family homes in need of significant renovations.
Wholesalers can save you the work of finding a rental property, but be sure to consult an expert Salt Lake City property management company and run the numbers to evaluate all properties before buying.
Consider New Construction
Rental properties don't have to be old or renovated homes in the Salt Lake City area! New builds can be an excellent and profitable addition to your portfolio.
- We've noticed an emerging trend of homes built for the rental market.
- As always, make sure you evaluate new builds to make sure they are the right sale price.
- 'New' doesn't mean you should overspend on a rental property that won't be able to generate enough monthly rent to add profit to your portfolio.
Be sure a newly-constructed home also offers what renters want in a home. These are affordable housing options that are attractive to renters, offer excellent amenities, are in prime locations, and can help investors go from closing on a home to having an occupied property (and rental income) quickly.
Mind Your Costs
Renovations and ongoing routine property expenses can quickly become costly. Salt Lake City investors must develop a way to monitor costs and ensure that their rental income exceeds these costs.
That doesn't mean skipping routine property maintenance and repairs to save money. In most cases, staying ahead of maintenance issues and taking care of seasonal maintenance requests and upkeep will save money in the long run.
- Make sure you're not overpaying for maintenance contractors or other services.
- If you're doing your own repairs, keep track of costs for materials, repeat trips to your local hardware store, and your time.
- Saving' money by being your own repair professional could be an expensive use of your time as an investor.
Setting the right rental rate is also critical to minding your property costs: if property taxes or other costs go up, you might need to adjust the rental rate to protect your bottom line.
Hire Professional Salt Lake Property Management
If you grow at a pace that you can't manage effectively or choose properties that don't make money, your large portfolio becomes full of costly, empty, Salt Lake City rentals that become liabilities instead of assets. Growing your portfolio by adding properties doesn't do your income any good without excellent, full-service property management to make sure your rental homes generate a profit.
- Professional Salt Lake City property management services become your best asset when building a successful real estate portfolio.
- We do everything from helping you evaluate properties and choose the best fits for your portfolio to recommending the ideal rental rate and providing professional maintenance services for your properties.
- We'll even encourage you to walk away from a property that doesn't show the best potential to add more income to your long-term wealth.
We don't want to manage a bad property designed to drain your profits—and you don't need a rental that drags down the rest of your portfolio.
Reeder Asset Management Helps Investors Grow!
Ready to grow? Let Reeder Asset Management help! We love guiding investors towards successful new properties while growing their portfolios towards profitability in the Salt Lake City area. Whether you work with a wholesaler or fix-and-flip investor, our team of professionals can help you evaluate a property to make sure it's an ideal fit for your portfolio.
We also provide rent collection services, professional maintenance, and budget management for investors. To learn more about how the right property management services can help you grow your portfolio, download our free resource, Real Estate Investing: How to Grow Your Portfolio.