Finding an investment property can be difficult no matter what market you are in. When searching for an investment make sure that you follow the approriate steps to lessen risk and increase returns:
- Search in an area that is exanding
All investors have certain areas that they enjoy and investment properties in wilmington are no exception. Talk to other investors and try to indentify areas that are not over competitive either. Choose areas that are “in-between”.
2. Go to the local REIA in your area.
In any market, local investors will have a REIA in Charlotte NC. Make sure that you network with other investors to learn where other investment properties can be found. Investors can be apart of a “herd mentaliy”, but if the price is right and numbers make sense, go for it!
3. Understand what a Cap-rate and NOI are
Cap-rate is the equivalent of the percent sign on a checking account. It is essentially the yearly return you will receive in rental income for a real-estate investment. In the vast makority of areas, a higher cap-rate usually means a higher risk proeprty. Make sure to understand the difference between risk and return for a real-estate investment.
Overall, with the correct preparation, investment properties can provide a steady return and be a great asset to build wealth. Whenever investing in income properties make sure to not rush the decision and obtain a real-estate agent before acutally submitting an offer!