As a rental property owner along the Gulf Coast, you may be wondering how you can use the current economic situation to your advantage to grow—or at least prevent yourself from losing any ground when it comes to your long-term income. However, regardless of the circumstances we find ourselves in (whether in times of wealth or times of struggle), the ultimate technique for portfolio growth actually depends on your connections.
Property owners that want to grow should always work on forging several of these crucial connections to strengthen the diversity of their holdings and boost their return on investment in the Gulf Coast area. Consider the following insights we've gained over time as the experts in Gulf Coast property management.
Get to Know Excellent Real Estate Wholesalers
Whether you're looking for a short-term rental property to become your next acquisition or a long-term rental, getting to know excellent wholesalers along the Gulf Coast will benefit you when it comes time to bag your next real estate investment. Wholesalers essentially do the legwork for you to connect you to potential property gems that need a bit of turn-around work to make them into a desirable rental property.
If you have the spare capital for renovations and know what renters are looking for in the Gulf Coast rental market, you can turn a distressed property or foreclosure risk into an in-demand single-family home. Properties like this require a little extra care long term, so be sure to keep the additional costs of maintenance and repairs in mind when you're faced with an appealing price tag.
However, many of these 'salvage' homes simply fell on hard times for sellers who found themselves with a lack of funds to make fixes or under a cloud of legal issues that needed solving. Getting to know excellent wholesalers means everybody wins:
- You find a property at a great price, often well below market rates
- The wholesaler helps connect you to these properties for a finder's fee
- The seller is relieved of a burdensome property that they may not have been able to sell.
The crucial thing to remember here is to ensure that you're forming working relationships with reliable contacts: it's important to vet your potential wholesaler just as you would any other investment partner.
Consider Fix-and-Flip Investors as Connections
If you lack the resources to renovate property finds through your wholesaler, forging some great relationships with trustworthy fix-and-flip investors can help you get properties up to speed through renovations.
The downside of this arrangement is that fix-and-flip investors tend to renovate properties with an eye on appreciation that targets future Gulf Coast homeowners rather than renters looking for their next rental home. If you want to work with these experts, you'll have to build a relationship from the understanding that renovations will be made to target the rental community with you as the property owner.
If you're not sure about the specifics concerning what renters are looking for in their next home, then working with a full-service property management company like Gulf Coast Property Management can be an excellent advantage for you. We have the skills and resources necessary to run rental analysis on any property you're considering, as well as pointing out which updates and upgrades would maximize your potential returns.
Investors are already looking for ways to optimize their profit margins on any property they add to their portfolio, and when times are challenging for investors, you can't afford to take a risk on a lemon. Run the numbers first on any property or work with expert property management services that can.
Consider Investing in New Builds Rather Than Renovations
You might think that the profit potential on a renovated rental property would be higher than purchasing a new investment property outright, but the margins for these properties in the Gulf Coast rental market might just surprise you. Of course, you have to be careful with new builds: you can end up falling into the same money pit that you might with a fix-and-flip property.
- Most newly-constructed properties are designed to be permanent single-family homes or multi-family dwellings for homeowners rather than renters.
- You'll want to confirm with your Gulf Coast property management team that the property you're considering making a move on has the kinds of amenities and features that renters are seeking in our area.
With that in mind, the benefits of a newly-constructed property are many. As a property owner, you're less likely to run into maintenance issues with a new property for at least a few years. This will not only reduce the potential volume of maintenance requests you'll need to face but the risk of turnover as well.
That's not to say you won't be responsible for conducting routine inspections or seasonal maintenance on a new property! The fact that it is new is all the more reason to keep it that way to consistently enjoy income year after year. However, to manage any new addition to your portfolio, you'll need to balance your budget and get any additional costs that are bleeding your funds in check.
Typically, this presents itself as some form of inefficiency in your processes, which can quickly be identified by a skilled Gulf Coast property management company.
Working With the Right Property Management Services Can Help You Grow
One of the best investments you can make in operating a successful portfolio that grows your long-term wealth is finding the right full-service property management company to support your endeavors.
A skilled Gulf Coast property manager can guide you towards the right decisions and purchases that will benefit your bottom line—and steer you away from the lemons that could hinder your efforts. Plus, you'll gain access to property management services that keep your current and future rental properties operating profitably!
You can even begin by accessing some of our expert insight for free. Get started by downloading your copy of our free real estate investing guide to grow your portfolio in the Gulf Coast area!