If you are an investor who has been waiting for the perfect opportunity to invest in Birmingham rental properties, then your time has come!
The Birmingham real estate market, like many other places throughout the United States, has been showing significant signs of progress toward recovery – but has not yet reached recovery. Specifically, today’s real estate market is still filled with discount properties (foreclosures, short sales, etc.) in addition to still-low home prices and mortgage rates.
The combination of low prices and interest rates with a positive real estate market outlook for the near future means now is your chance to invest in rental properties in Birmingham, AL.
Three Tips for Investing in Birmingham Rental Properties
When investing in any type of real estate, it is essential that you follow tips and guidelines to help increase your chances of making a smart real estate investment.
Tip #1: Know Your Purpose
When purchasing rental properties, it is essential that you understand your purchase for investing. As you know, not all home are built alike. Some homes can quickly and relatively easily be converted into a duplex, while others cannot. Furthermore, many lenders are selling distressed properties (i.e. foreclosures) in bulk; however, these homes often require significant improvements before being in a good condition for renting it out to tenants. Therefore, the first step is to determine your purpose and therefore the type of property that will best meet your needs.
Tip #2: Know the Location
In addition to knowing your purpose, it is pertinent that you understand the local real estate market in which you are looking to invest. How much are people paying for rentals in the area? What are some local attractions that you can market to potential tenants?
Birmingham in particular is quite diverse; the urban core itself has several different residential areas while being surrounded by a ring of suburbs, each with its own unique environment. When it comes to real estate, location is key—the same is true when investing in rental properties.
Tip #3: Know your Clientele
After you have purchased the property, you will then have to market it to potential tenants; therefore, it is pertinent that you know your potential customers so that you can tailor your marketing strategies to best meet their needs. One of the best ways to do this is to actually find and hire property managers in Birmingham, AL who do all of this for you (screening tenants, collecting payments, scheduling maintenance, etc.) so that you can focus your time and efforts on finding more investment opportunities.
If you are looking for a property manager in Birmingham you can trust, then learn more about what Golden Key has to offer to investors and homeowners.