The US housing market crash between 2007 and 2010 caused a sharp rise in wealth inequality. By 2016, the median net worth only improved slightly and continues to slowly improve over time.
For investors, this means that now is the best time to invest in real estate. If you want to build wealth, you need to know how to choose an investment property in Charlotte, NC. Keep reading to learn the steps.
Make a Plan
To choose the right investment property in Charlotte, NC, you need to make a plan.
Start by deciding the type of property you want to invest in. You can start with one condo or choose a building with multiple units.
Securing a mortgage is the first hurdle unless you plan to pay cash upfront. Investment properties come with strict financial requirements so your plan should include a detailed overview of your budget.
Since investment properties are riskier, lenders will charge a higher interest rate and a minimum 15% down payment.
Consider All Expenses
There's more that goes into real estate expenses than just the cost of a Charlotte investment property. There are a lot of expenses to cover so it's important to create a checklist.
The most common expenses are repairs, renovations, and property taxes. The general upkeep is going to be more involved than you think.
Plus, if you want to hire the best help, you need to have enough funds to hire a rental property management company.
Establish Property Management
When purchasing an investment property in Charlotte, it's best to hire a company that knows the ins and outs of the business. To minimize management costs, you can run the property yourself, but this is not recommended.
Being a property manager comes with a detailed to-do list that changes daily. Hiring a management company frees up your time because they can take care of most of the things on your list.
Property managers handle tenant problems, coordinate repairs and maintenance, collect rent, and more.
Play the Long Game
Once you find the best investment property, you need to play the long game if you want to see a return. Real estate investments are often thought of as a get-rich-quick solution, but this could not be further from the truth.
If you plan to build wealth, you should be in real estate for the long-term rewards. Over time, your assets will grow.
As a new investor, it's best to start small and work your way up when you familiarize yourself with the business. Don't wait for the perfect opportunity to pop up because these opportunities don't always exist.
Instead of waiting, find a property that fits your objectives and needs.
If you already own property elsewhere, Charlotte, NC, is a great area to continue your investment growth.
Look for an Investment Property in Charlotte, NC
Learning how to choose an investment property in Charlotte, NC is hard work. You'll want to familiarize yourself with the area, make a plan, consider your financial situation, and establish property management
We can help you find the best properties and play the long game. Contact us today to learn more about our services.