Success via real estate investments doesn't happen by accident. Some investors can find success with one or two investment properties and a DIY approach. However, serious rental property owners who want to build an extensive D.C.-area portfolio and significant long-term income won't get very far without a solid strategy for success.
- Not every investment strategy is something you can put your faith in as an investor.
- There are plenty of ways to approach portfolio growth, but 'best practices' are the best for a reason.
- In real estate, there are rarely shortcuts or quick fixes that contribute to long-term success and income.
We don't mean that the best strategies are difficult or time-consuming—but trusting the advice from proven industry experts is the best way to experience sustainable growth and income when you invest in D.C. rowhomes for rent.
What are the best real estate investment strategies? Here's what the experts at EJF real estate want you to know.
Be Careful Who You Trust
These days, most people research a product or service online—thoroughly—before making a purchase. Reading reviews (especially the three-star reviews), checking a company's website, and asking for personal experiences help consumers choose high-quality products and services before spending hard-earned money.
- The people you trust to help you with your rental properties should receive a significant amount of scrutiny before committing to a service provider.
- It's crucial to screen renters before allowing them to move into your rental property, and the same applies to your potential partners for any real estate venture.
- If you fail to research a property manager or vendor to help manage your real estate investments, you could end up with poor-quality services—or a vendor that takes advantage of you.
Follow the (Right) Signs
When it's time to find a professional to purchase or sell a rental property, you probably wouldn't call the number on a handwritten sign in the ground at an intersection that advertises 'We pay cash for homes!' You want a successful real estate agent who can get you the best price for any transaction.
When choosing professional property management services to get the most out of your D.C. rowhomes for rent, you want a respected company with a track record of success. With enough research, investors can find the best companies and avoid property managers who don't deliver.
Choose Reputable Investor Groups
There are plenty of ways to finance properties when adding to your portfolio. A Real Estate Investment Group (REIG) can be a smart way to purchase properties without being the sole financier.
- Much like researching for the best property manager, put the time into investigating an investment group before committing to it.
- Choose a group with partners that have goals similar to yours and a history of reputable transactions.
- Review the structure to make sure you agree with levels of ownership, funding responsibilities, and payout percentages.
The right investor group can help you grow until you build enough cash reserves to finance properties independently.
Look Into Turnkey Opportunities
The renovation process often adds the highest upfront costs when developing a new rental property. If you're low on additional funds or short on time, turnkey properties can be the right answer to your next rental property purchase.
- Whether single-family homes or multi-family units, a turnkey property is rental-ready when an investor buys it.
- Turnkey providers find properties with excellent rental property potential, buy them, then renovate them specifically for real estate investors.
- When you find a turnkey property that fits your portfolio, you don't have to spend time or money getting it rental-ready. Once you complete the sale, you enjoy rental income right away.
Turnkey investments are an excellent way to speed up your portfolio growth. When choosing one of these properties:
- Conduct the standard research you would for any potential rental property: Make sure it's a good investment.
- Ensure the completed renovations make sense for a rental property: Not every turnkey property is a rental-friendly addition to your portfolio of D.C. rowhomes for rent.
- Confirm ongoing property management services are available: Especially if the rental already has a paying resident, you need expert property management right away.
If you're not sure that a turnkey property is a good purchase, consult the best property management D.C. offers. We can review the numbers and analyze the renovations to make sure you're getting a high-quality rental home that will add more income to your portfolio.
The Most Dependable Strategy Is an Expert Property Manager
Your best strategy for success is to hire a professional, full-service property management company to handle every aspect of a growing portfolio. You can always depend on the right property manager to help you find properties that fit your portfolio and goals.
When you invest in D.C. rowhomes for rent, don't settle for risky strategies that could leave you with lost income. While real estate does involve some risk, successful growth requires stability, sound strategies, and high-quality property management. You can learn more about the benefits of such a partnership when you download our complimentary Real Estate Investing Guide.