If you’re buying your first Cleveland investment property, it’s possible you’re feeling just a teensy bit of stress.
That’s completely normal. You’re about to invest a lot of money into a piece of property that you hope will earn you some short-term rental income and some long-term returns. You want to get it right.
As long as you have done your planning and surrounded yourself with experienced professionals, you can expect a successful investment process – even the first time out.
Here are some tips we have that can help you reduce the stress you may be feeling as you prepare to buy your first rental investment property.
Buy the Property that Fits Your Investment Goals
When you’re investing in Cleveland real estate for the first time, you need to know what you’re looking for and why. Are you looking for a home that you’ll hold for the long term, or do you expect to sell it in a few years? Will you ever use this property yourself? Is this part of a retirement plan or are you considering you might make this a short term or vacation rental? All these questions need to be answered before you choose the right investment. Make a plan and establish some goals so you know exactly what you’re looking for.
You need to understand and identify your own investment goals before you identify a property. If you don’t know why you’re investing and what you’re looking for, the process will be far more stressful than it needs to be.
Get to Know the Cleveland Rental Market
The Cleveland real estate and rental market is just like any other market in the U.S. It moves through cycles and trends that are sometimes predictable but also surprising. You can’t really buy an investment home until you know what rents look like, what tenants are demanding, and how your property is likely to appreciate in value over time.
Educate yourself on the real estate market so you’ll understand the inventory and what you’ll have to spend. Educate yourself on the rental market too, so you’ll know what kind of rental value to expect and how much you’ll likely spend on things like maintenance, vacancy, and tenant placement.
Study neighborhoods and shifting demographics. Figure out what you’ll need to spend to get the property that fits your investment goals. Knowing how the market works will help you decide what to buy and when.
Partner with Cleveland Property Managers
Before you even think about buying an investment property, make sure you’re partnering with the right Cleveland property manager. It’s nearly impossible to have a successful investment experience when you do everything yourself. Experienced, successful investors know this. Trying to do it all yourself will only increase stress and open the door to expensive mistakes.
You’ll also need a local real estate agent, a broker, an insurance agent, and an entire team of vendors and contractors who are ready to make your property ready for the rental market.
You may think that Cleveland property management isn’t really necessary until you’re ready to lease the home, but getting some good advice early will reduce your stress. Build a strong professional network and rely on those more experienced professionals to help you when you’re feeling concerned about any part of the buying process.
We can help you navigate the first investment you make. When you’re ready to talk about the process, please contact us at IIP Management. We work with owners in the Greater Cleveland area.