You’ve tested the waters and invested in a rental property. It’s gone well, and you’ve learned a lot from the experience. You’re now ready to expand your rental property portfolio by purchasing a second or third Asheville rental property.
Keep these factors in mind when looking for your next investment.
1. Location
Since you already own a rental property, you should have already done your research to know where the ideal rental market is in Asheville. These are neighborhoods that are up and coming or in demand for people who are looking to rent. You’ll want to look for your next investment in this same area.
Not only will this give you the best chance of finding a tenant, but it will simplify your management of the property. When your rental properties are in close proximity, it’s easier to check on both, arrange for contractor’s services, and secure volume discounts.
2. Simple Landscaping
Pay attention to the size of the property and the landscaping requirements. You want the property to look attractive and neat but also not high maintenance. It’s normal to expect your renters to handle lawn mowing, but you can’t and shouldn’t expect them to maintain large flower beds and complex landscaping arrangements.
This means that the expense of landscaping upkeep will fall on you. You don’t want expensive landscaping upkeep to cut into your profits.
Don’t automatically rule out a piece of property if it has complex landscaping. You may be able to invest in the work upfront to simplify it for low-term easy care.
3. Number of Bedrooms
Asheville is a thriving city with many neighborhoods that are full of charm and perfect for a family with children. Invest in a rental home that has multiple bedrooms. Then you capitalize on these younger families with children.
A home with more bedrooms tends to be larger, so you can command a higher rent rate. Families with children tend to have more stability. This is valuable for you because it means longer tenant placements and fewer times you’ll need to list the property, screen applications, and place a new tenant. The reduced tenant turnover results in lower property management costs.
4. The Right Upgrades
The upgrades you’re looking for are the major expenses, such as a roof or HVAC replacement. These should either be new or recently replaced in the last few years. That way, you have an opportunity to generate an income from the property before you have to spend money on maintaining and upgrading the home.
Don’t worry as much about cosmetic upgrades. While you can ask for a higher monthly rental rate for a newer home, these newly remodeled homes are also more expensive to purchase. This can make them cost-prohibitive to invest in. It’s easier to invest in a home that’s slightly outdated.
5. Low Property Taxes
Property taxes in Asheville are assessed based on the market value of a property. There are also a number of exemptions that homeowners can claim. North Carolina’s property taxes are already low compared to the national average.
Higher property taxes can signal that you’ve found a property in a great neighborhood that would attract long-term tenants. However, higher property taxes doesn’t automatically mean the property is desirable.
Balance the property tax rate with other maintenance costs when determining your cost of investment and possible ROI.
Find Your Next Asheville Rental Property
Finding the perfect rental property to invest in is like finding a needle in a haystack. Working with a property manager can help you get more eyes on the rental market. This lets you find the right property at the right time for your next investment.
Contact our skilled team today and let us help you grow your rental property portfolio.
