3 Reasons Why You Should Buy a Second Rental Property in the Same Neighborhood
The Benefits of Buying Within a Neighborhood
Once you start making a profit on your first rental property, it can be addictive. Who doesn’t want to make more money? This is especially true if you’re counting on a rental property to supplement your retirement.
Location, Location, Location!
You’ve probably heard the old real estate adage “Location, location, location.” It’s so true. With the perfect location, your rental property can be a financial fountain of profit. So, is it wise to buy within the same neighborhood? Location determines property prices and the demand for rental properties in that area. So, yes, if you’ve found a profitable location, by all means, invest again. Also, location determines the return on investment.
Buying a second home in a profitable rental location seems like a no brainer. However, there are both pros and cons to any investment, so always do your research on the location in which you plan to invest. For instance, check the Department of Transportation’s website to learn of any new road expansions in the area that may affect home values.
Positive Cash Flow
If you’ve already found one of the top locations in your city, then you know the benefits of owning multiple properties in the same location. Top market spots generate positive cash flow. Research the top areas of Raleigh and consider investing in rental properties within these locations.
Knowing the Neighborhood Tenants
If you already know your neighbors, then your second investment property will be a sound one. You won’t have to worry about unexpected surprises that go along with a poorly chosen location. Knowing your neighbors helps, too, when taking on new tenants. You’ll know what kind of tenant is drawn to that location which means you won’t have to worry as much about default tenants. The purchase process will be an easier one, too, because you’ve already bought from the same location. You already know the rental needs and requirements of that specific area. When you’re aware of the challenges ahead of time, you can avoid them and ease the investment process. Another perk of knowing your current tenants is that they can refer new tenants to your property. This makes the tenant screening process an easier one.
Being familiar with your targeted market will allow you to purchase a rental property that checks off all the boxes, ensuring a profitable investment. For more information on where to buy rental properties in the Raleigh area, take a look at:
At Oak City Properties, we have been taking care of rental properties for years! Our full-service property management company will help you find and buy new rental properties to grow and diversify your portfolio. We will also market the property, locate prospective tenants, and show the home to qualified applicants. Once a tenant is placed in your rental property, we will: collect rent payments, assess and collect late payment fees, provide 24/7 maintenance, help with accounting/tax services, and deal with any court appearances in the event of an eviction.
Want to read more about property management services? Here are a few blogs that may interest you: