Did you know that Memphis is the number one market where first-time home buyers and investors battle for the same property? With great rental returns, population growth, and vibrant communities, it’s no wonder investors and buyers are heating up in Memphis. If you’re looking to take the plunge into real estate investing, we have the ultimate house-hunting checklist to start with.
From which property to buy to the benefits of property management, we’ve rounded up everything you need to know before you buy. This investment house-hunting checklist will ensure that you make the right decisions and set your investment up for success. Let’s jump in and get your investment journey started.
Determine Your Investment Goals
Before you begin the house-hunting process, it’s crucial to identify your investment goals. Determine your desired return on investment (ROI). Consider whether you plan to rent out the property or sell it later.
Understanding your long-term objectives will help guide your decision-making process. This home or condo could be a short-term vacation rental or one you rent out long-term to yearly tenants. Your goals will help narrow down a location, a price point, and more.
If you’re looking for a home that you’ll rent out yearly, for example, you’ll likely look for certain characteristics. These might be proximity to schools and parks for families or near a vibrant nightlife scene for young professionals. Use your goals to determine your must-haves and your wish list for a property.
Research the Neighborhood
Location is key in real estate investment. Conduct thorough research on the neighborhoods you are interested in. Look for areas with a high demand for rental properties, low vacancy rates, and strong appreciation potential. Consider engaging with experienced professionals in Memphis property management who possess in-depth knowledge of the local market.
They will help guide you on which properties make the most sense to rent out. They have years of experience in the local market with rent data, population information, demographics, and more. The neighborhood is one of the most important keys to getting a great rental rate.
Whether this is a short-term vacation rental or a long-term rental property, you want to get the most out of your investment. Property managers will help you set a fair market rent and secure reliable tenants.
Evaluate Potential Home Improvements
When house hunting for an investment property, it’s often necessary to make improvements to increase its value and appeal to potential tenants. Evaluate the condition of the property and create a list of necessary repairs and upgrades. Calculate the potential costs involved and determine if the investment aligns with your budget and expected ROI.
While you don’t want to over-improve and spend more than you’ll get back, certain improvements are worth the investment. Cleaning, new paint, and new hardware, for example, are inexpensive ways to update a property without breaking the bank.
Any small improvement you make will help the property rent faster. Renters want to see clean, neutral spaces with modern conveniences. Look for a home with the potential to appeal to renters. Sometimes this is a home that needs a little update and other times it’s a new-construction home.
Adequate Space and Floor Plan
Consider the size of the property and its floor plan. Tenants typically prefer spacious accommodations that offer functionality and comfort. Ensure that the investment property provides adequate bedrooms, living spaces, and storage areas.
A well-designed property will attract quality tenants and help maintain higher occupancy rates. Your property will rent sooner and for more money when the space is used well. Consider the square footage, the layout, and how tenants will use the space.
Assess Bathroom Fixtures and Plumbing
One area that can significantly impact a tenant’s satisfaction is the bathroom. Check the condition of bathroom fixtures such as sinks, toilets, showers, and bathtubs.
Address any plumbing issues promptly. A well-maintained bathroom will not only enhance the tenant’s living experience but also minimize repair and replacement costs in the long run. Spending a little money upfront will also minimize calls and plumbing emergencies over the years.
Another perk to using a property management company is that they have access to repair professionals and contractors. They will help field tenant calls and coordinate repairs when needed.
Outdoor Details: Backyard and Deck
A well-maintained outdoor space often adds value to an investment property. Assess the condition of the backyard and consider if it provides a suitable environment for tenants.
Additionally, a backyard deck or patio can enhance the property’s appeal, providing an attractive area for tenants to relax or entertain guests. This is a huge selling feature for tenants.
Partner With a Professional Property Management Company
To ensure a smooth and successful investment property, consider partnering with a reputable Memphis property management company. Their expertise in tenant screening, lease management, property maintenance, and market analysis will provide you with peace of mind and maximize your investment’s profitability. From choosing a property to looking after it when you’re not there, they can help every step of the way.
You’ll have a partner to take care of your home when you can’t be there. Whether you’re down the street or 1,000 miles away, you’ll have peace of mind that your home is in good hands. Property managers help with repairs, maintenance calls, lease negotiations, and more.
Property managers will help with marketing, screening new tenants, and keeping tenants. This would take weeks or months to do on your own. Let the professionals help so that you can focus on other businesses, family, and your busy life.
Start Your House Hunting Checklist With Memphis Property Management
Purchasing an investment property requires careful consideration and planning. Utilize this investment house-hunting checklist to thoroughly evaluate potential properties, consider necessary improvements, and set yourself up for success.
Partnering with experienced professionals at Reedy & Company gives you years of experience and local expertise. Let us take the stress of owning a rental property off your shoulders. Fill out the contact form here to get in touch with one of our management professionals.
