There are several good reasons to buy an investment property in Nashville. This is a strong market right now, and investors from all over the world are taking an interest in the opportunities available here. When you invest in rental properties, you set yourself up for some long-term ROI as well as consistent rental income in the short term. There are tax benefits and increasing home values.
To invest successfully, however, you have to make sure you’re ready financially and personally. You have to be willing to surround yourself with professionals who can ensure you have a good experience. Otherwise, you’ll find you have wasted a lot of money and other resources.
Here are some of the things to consider before you buy an investment property.
Time and Resources Needed for Nashville Investments
You’ll have to invest a lot of time in finding the right property, negotiating the best deal, and finally closing with the terms you want. Then, the real work begins. You will need to have the time it takes to find a tenant, respond to maintenance issues, and take care of the inspections, accounting, rent collection, and lease enforcement. You’ll need to spend time developing and maintaining positive and respectful tenant relationships.
A lot of new investors look forward to the income and the asset, but they forget about the time it takes to make their rental property profitable. If you don’t think you’ll have the time necessary to lease and manage and maintain your property, make sure you have the support you need.
Expertise and Knowledge Needed for Nashville Investments
Of course, you need more than time. You also need to know how things are done.
Setting a rental price, for example, requires a lot of research into the Nashville rental market. You’ll want to explore the competition and decide what your property is worth. You’ll need to know how to market the home, and which online rental sites are the best for advertising. Can you screen tenants thoroughly? Will you know how to check credit, verify employment and income, and look for past evictions and criminal records? Can you call former landlords for a reference?
Once a tenant is in place, you’ll need a good network of maintenance professionals. Vendors and contractors who can help with plumbing, HVAC work, electrical needs, roofing, cleaning, landscaping, and pest control will be necessary. You’ll need a system for collecting rent, inspecting the property, and responding to maintenance requests.
A property manager, for example, can help you evaluate potential investment opportunities. You’ll know how much you can expect to earn in rent and what you’ll have to spend getting the property ready for the rental market. Once you own the home, your property manager can expertly lease, manage, and maintain it, ensuring your expenses are kept down and your rental income continues to grow. Omni provides turn-key investment services then on to leasing and management.
We’d love to help you begin your real estate investment process. For all of your Nashville property management and investment needs, please contact us at Omni Realtors & Property Management.