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What to Look For in a Potential St. Cloud Investment Propert

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What to Look For in a Potential St. Cloud Investment Propert

2019-08-22

What Makes a Quality Investment Property in St. Cloud, MN?

Do you have some extra money to invest? Perhaps, you funneled the maximum amount allowed into your 401K or IRA account, but there's cash left over. Watching your capital grow slowly in a Money Market account is certainly an option. However, we understand you want something more. You've even considered buying at least one rental home, but aren't sure where to begin. Here are some things to look for when comparing investment properties in St. Cloud:

  • What is the neighborhood like? Are there public amenities nearby (i.e. a library, a park, a bus stop)? If the property is isolated, it will be hard to occupy.
  • What is the neighborhood vacancy rate? If it is high, which means many homes are not occupied, you don't want to invest there. 
  • What are homes in the neighborhood of the same size selling for right now? If a home is listed way under those prices, there could be some major problems with the property.
  • How many homes in the same price range are on the market this month? If most homes are sitting there month after month, the real estate market could be very slow.
  • What is the average rent for this neighborhood? This rent payment should be something you can afford temporarily if the tenants suddenly have to leave.

These types of questions help you determine whether buying a single-family home, however attractively it might be priced now, will pay off in the long run. Choose a property that is likely to be rented when the tenants move out. 

Choosing Quality Investment Properties in St. Cloud

If you're looking to grow your money over a long period of time, then you can appreciate the benefits of buy and hold real estate strategies. By this, we mean that you will invest in a property, such as a rental single-family home with tenants securely in place, and obtain the returns over time. This is easy to contrast with a short-term strategy, such as buying a property, fixing it up, and then flipping it. Buy and hold gives you security, while home flipping helps you recoup the benefits of inflation in the market. Both strategies for managing your real estate investments do reflect the general concept that savvy investors have always known: land holds its value over time. 

Renters Warehouse is a property management company serving St. Cloud, and we can help you find properties for sale. We want you to find homes that will pay off this month, next year, and five years from now! 

Why Try Buy and Hold Real Estate Investment Strategies   

Matt Topley, chief investment officer at Pennsylvania's Fortis Wealth, recently explained in U.S. News and World Report: "The human mind is not set up to ride out the volatility required to outperform... Most people are psychologically built for a less volatile buy and holddiversified strategy that lessens your chance of human error."

When you consider buy and hold investing, you will definitely avoid making investments based on emotions, which is common in flipping strategies. Let's boil this down to the brass tacks. If you could purchase a rental property that is off-market (or not listed anywhere on the St. Cloud market) and known to produce a steady income, you would have peace of mind. You know your investment would pay off, and you could hold it for as long as you wanted. If you're concerned about losing the established tenants, that's not a problem! Trust a property management company like ours. We're ready to step in and find new renters before you see any gaps in rent.

At Renters Warehouse, we encourage you to check out our unique inventory of fully leased off-market single-family homes for sale! Please contact us for details today.


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