Property Management Blog

How Tourtelot Helps Investors Find the Best Properties

System - Friday, September 9, 2022

Investing in Real Estate—How to Find Best Investment Properties

Are you looking to purchase a residential investment property?

Buying real estate can be an incredibly lucrative investment. Perhaps the biggest benefit is that rental properties are a great way for people to make a passive income. And not only is making your money work for you is very attractive, but it’s what investing is all about.

But expected cash flows and profit opportunities aside, investing in rental property can be daunting for a first-time investor.

How to Find Investment Properties

Landlords are in the driver’s seat in today’s rental market. For many, renting is a more viable option than buying. The cost to purchase a home becomes more and more expensive, many potential home buyers are being forced to find rentals instead. That said, owning an income property is not for the faint of heart. Investing in rental property requires in-depth knowledge of property management, tenant and landlord laws, leasing, and mortgages. It has a reputation for complexity, but it doesn't have to be. At least, not with the right property manager by your side. 

Here’s how Tourtelot Property Management can help you find rewarding investment properties. 

1. The advantage of local market knowledge

The saying "location, location, location" may be tired, but it’s still true. Especially in the world of real estate investing. The first thing renters look at, aside from the house itself, is the neighborhood. A locale with an increasing population, low crime rates, and a growing job market can mean a larger pool of quality tenants. 

There are several factors we consider when evaluating the location of residential properties. Tenants want to know if it’s in a good school district. Is it close to their work? What about amenities such as parks, shopping centers, a sound public transport system, and restaurants? The more boxes a property ticks, the more desirable and easier to rent it will be.

2. Finding good tenants

Screening tenants is a complex process that requires experience. Even if you have experience in the real estate market, it can be difficult to discern good tenants from the bad. That’s why working with an experienced property management company is so important. 

Part of effective property management entails conducting complete background checks on potential clients. Plus, evaluating factors such as credit ratings and rent payment history. Combining all this information can help you and your manager make smarter decisions when selecting or approving tenants.

What’s more, the location of a rental property can tell you a great deal about the kind of tenants it attracts. The last thing you want is to end up with difficult tenants or a rental property that no one wants to rent. That’s why property managers place such emphasis on the location and overall appearance of the property. 

When a rental unit is in the right place and in the right condition, you’re more likely to attract good tenants that are willing to take care of the property. And those are the kind of tenants you want to rent your property.

3. Check income potential

We recommend that you evaluate Residential properties on their unique characteristics, such as layout, location, and amenities. It’s crucial to check a property based on the income it generates and if there is potential for the income to increase. Other important things to look at when evaluating a property is if there are any additional costs outside of the norm. 

Properties that are a part of HOAs or condo associations can have expensive monthly payments or even a CDD which can affect your tax bill. It’s smart to look at health of these associations, if they are planning on increasing fees, and if they are facing any legal troubles. This helps to determine your potential profit from the rental unit as well as any potential risks the property might present.

It's important to understand how a property operates. There are several expenses associated with owning a rental property outside of just purchasing it. These include repair and remodeling costs, general maintenance, taxes, property management fees, and insurance. 

Partnering with an experienced property management firm gives you the advantage only years of managing investment properties can bring. We can help you evaluate all this information and decide whether the property will make you money. This way, you can make an informed decision and make sure the property will be a worthwhile investment.

4. Become part of a real estate investment group

There are several ways to invest in real estate, from owning real estate property to real estate investment trusts (REIT). The latter plan is gives you the portfolio exposure you desire without a traditional real estate transaction. Joining a real estate investment group (REIG) is another great option. It's a more hands-off approach to real estate, which is perfect for some investors.

Property managers have extensive networks filled with real estate agents and brokers, investors. At Tourtelot Property Management, we have experience managing investment properties for REIGs. From handling maintenance to advertising vacancies, and interviewing tenants, we do it all. 

Partner with Tourtelot Property Management 

As a full-service property management firm, you can rely on the Tourtelot team to manage every aspect of your investment. We'll help you find the best properties to invest in and the best tenants to rent to. With our extensive experience providing property management services, we'll help you find properties that will be lucrative to your investment portfolio. We'll manage each property for you, so you can have peace of mind that your properties are in good hands.