Ready to expand your investment portfolio in a new market? Learn how to find a property and hire a Grapevine property manager when you live out of town.
Do not assume anything. It is your money is on the line.
When you are looking to buy a rental property, look at the trends for the area to determine if the neighborhood is moving in a good direction. Historical data,taxes, pricing, and crime statistics can be used to determine any trends going on with the area.
The numbers must make sense. If you do not purchase at the right price point, you could find yourself in a negative cash flow situation every month.
Things like insurance and taxes need to be factored into your costs when determining the profit, you can expect to get from a deal. Insurance rates can vary significantly from state to state, so don’t assume it is going to be the same as what you are paying in your state. Is the property in the city? What is the property tax rate for different areas you are looking at?
You do not want to invest in the one property that does not seem to fit in with the rest of the neighborhood.
There are several things that can factor in a home seeming at first to be a fantastic deal but look cautiously at the WHY. Are you getting a good deal because the prior owner had a hard time selling it due to some features of the home? You could experience the same challenges when you try to rent it out or sell it later.
Be cautious and thorough when looking at properties that seem too good to be true.
What is the age of the property? Are you allocating enough in reserve to take care of maintenance costs? Is the property going to need more expensive improvements like a new roof, new HVAC unit, etc. in the next few years?
Spending a little more for a newer property might be more profitable than an older home that is going to need a lot of maintenance work. Both old and new properties are viable options for rental homes, but you need to factor in any potential maintenance costs of each option before deciding to buy.
“I’ve remodeled older homes and rented them out, only to have a string of little things that tenants wanted fixed over the next few months. It’s not uncommon; take it into consideration. Does it mean the house will forever be a nuisance? Absolutely not. It’s simply that buying older homes may come with additional work, depending on how well they’ve been cared for in the past and how well you care for them going forward.” – Source: BiggerPockets: Pros and Cons of Old vs. New Rentals
Getting a return from that deal month after month is what you can expect from hiring an effective Grapevine property manager. Acting as a buffer between you and the resident along with all the laws that go along with it. It is important that you are getting a partner that is there to ensure you are successful.
Once you have purchased your out-of-town rental property, the next step is finding a Grapevine property management company that matches your goals and investment strategy.
Having a team that is familiar with local laws that are constantly changing is important, especially if you own property in a city you are not familiar with. Not knowing the local laws can leave you liable, so you are better off letting a local property management company manage your rental property. That are also in the position of being able to take good care of your tenants.
You will want to ask the right questions when you are interviewing Grapevine Property managers
If a property management company is not able to answer most or any of these questions, they probably aren’t the company you are looking for to care for your investment property.
If you have a property that rents for $2000 a month and they manage properties around $300 a month, there may be a disconnect on how you want your tenants to be treated. It is important to have these conversations before you hire the company.
Our team of local professionals at Mynd Property Management are different from other Grapevine property managers. We leverage real-time data to consistently better our services, providing owners with seamless management experience. Contact us today about Grapevine property management for your rental property.