Do you own multiple properties in St. Louis?
You have an excellent opportunity with the possibility of an even more lucrative real estate portfolio.
St. Louis has one of the most competitive housing markets, attracting everyone from students, professionals, and artists to families. There's also a thriving real estate investor community to help you finance, grow, and sell off properties.
Before buying your first real estate investment, you need a plan to generate income as quickly as possible. "Time is money" is one of your first lessons as a real estate investor.
Plan now with these essential tips and tricks.
Set Real Estate Investing Goals
Always start with a goal. This should be a manageable goal that you can achieve and measure.
Thus, your first steps are to estimate realistic budgets and profit goals. Choosing the rental income model is an example of smart goal-setting.
When searching for a property, look for areas with high rental activity. Consider college town neighborhoods, residential areas near financial hubs, and properties in proximity to good school districts, emerging industries, and amenities.
Research similar properties in those areas. You can find public data for property sales, investors, and other information that can help you gauge an investment strategy.
Real Estate Financial Planning
The next step is funding.
It's possible to finance property purchases out of your own pocket. This method is called bootstrapping.
However, if you want to keep building your real estate portfolio, you'll likely need a loan to pay for subsequent properties. Consider other expenses like maintenance, property upgrades, and landscaping. You may have to invest in such services to command a good listing price.
If you have good credit, you may qualify for real estate loans with low interest rates. You can also start an investment group with partners who share the same goal. Creating an investment group can facilitate the capital allocation you need to extend your real estate portfolio to different property types.
Every Real Estate Investor Needs a Property Manager
Working with a property manager is an absolute must.
You need a professional who can handle the following tasks:
- Property maintenance and upgrades
- Tenant placement and screening
- Property marketing
- Financial reporting
- Rent collection
A full-service property management company can handle these tasks while updating you on operations. One of the hallmarks of an excellent property manager is communication skills; expect to be updated regularly on financial reports, revenue increases, and profit strategy.
The goal is to ensure the integrity of the property while optimizing profits. Property managers understand competitive pricing strategies in St. Louis.
Look for a property management company that prioritizes lease renewals; this approach helps decrease tenant turnover, putting more profit in your pocket.
Realize the Potential Of Your Property
Don't let a great St. Louis rental property go to waste. Property managers are here to assist a real estate investor like you on this exciting journey. Talk to a manager about your goals, financial planning, and the ins and outs of property management to learn more.
PMI STL Metro has a team of dedicated property managers who are experts on the St. Louis property market. We're part of a nationwide property management family with over 20 years in the property management industry.
Call us today to talk to us about your goals.
