Blogs and Videos

3 Tips for Finding the Right Investment Property

As cities like Baltimore continue to grow and diversify, property investors are able to receive great returns while providing a necessary service to the community. If you’re ready to get into the industry yourself, it’s important to how you should go about finding the right investment property. There are a variety of useful resources, but for now let’s discuss 3 crucial tips that will help make the process easier for you.

Research Neighborhoods with Potential For Growth

Baltimore is a city full of unique neighborhoods that each present different advantages to investors. Your first step will be to determine which area of the city you want to begin your investment journey in. Neighborhoods like Fells Point and Mt. Vernon are proven locations with a great return probability, but they also come with a larger cost of buying in thanks to their huge popularity with residents and businesses. For first time investors, you may want to look to neighborhoods that have demonstrated recent growth trends while not yet reaching massive popularity. Look to areas that are expected to grow and with year-over-year increases in housing and service costs. Not only will this help guarantee your investment is financially viable, but that you’re purchasing properties where tenants will actually want to live. Often times, the matter of finding the right investment property is a matter of finding the right neighborhood.

Determine the Scope Budget and of Your Project

Investment properties come in all shapes and sizes. A good step to take is to decide on a realistic budget you’ll have when purchasing an investment property and weigh this budget against the work that will go into making the property viable. Throughout Baltimore, investors purchase and rehab multifamily buildings for tenancy. However, this solution may not be the best for a first-time investor. Not only will this require the funds to bring the project together, but also requires hiring an experienced construction team. For your first investment property, it may be wise to purchase a property that is already in good working order, and make updates as needed.

Learn What Is Appealing to Tenants

For your investment property to be a success, you obviously need to draw in tenants. Learning to understand what they want out of where they live will make the process of finding the right investment property easier. Look for properties that are in prime employment and education areas, such as nearby colleges, hospitals, elementary schools, offices, etc. The prime location is one of the most important factors in driving tenancy. However, more important than just acquiring tenants is ensuring they want to stay. Ensure your investment properties has amenities that will appeal to renters, whether it be close proximity to nightlife or good appliances, functioning AC/heat, and any other number of features that make day-to-day life better for tenants.

Ben Frederick Realty Can help you Find the Right Investment Property

A great place to start your search for the right investment property is with the team at Ben Frederick Realty. Our expert agents are well versed in Baltimore’s best neighborhoods for growth and ROI, and we can help guide you through the process of expanding your investment portfolio. Contact us today to begin your investment journey.