Expanding Your Real Estate Portfolio Can Boost Your Income
As an investor, no matter what your primary market may be, opting to expand your real estate portfolio may be the key to reaching your net worth goals. However, knowing exactly where to start can be a challenge. That’s why it’s necessary to know when it’s the right time to expand, figure out which market strategy will work best for you, and find a property management company that can adequately serve your investment needs.
To help you plan the next steps for expanding your real estate portfolio in order to increase your income and maximize your net worth, American Real PM is breaking down everything you need to know below.
Why Expand Your Real Estate Portfolio?
Increasing your number of real estate investments is a great way to increase your overall revenue. There are numerous markets nationwide that have a high rental demand and growing economies but with cheaper real estate, which makes it possible to own multiple properties that will offer better returns on your investment. Increasing your assets in real estate is a smart business decision that can provide a surplus of passive income and diversify your overall investment portfolio.
When Is It the Right Time to Expand?
First, it’s important to make sure you have the necessary financial resources to expand your real estate portfolio. Pay off the mortgage of your first investment property, then use the positive cash flow from the rental income as a down payment on your next property. As Scotty Mitchell with American Real PM states in this video, one of the easiest ways to increase your portfolio is to take the equity that you gain in the first few properties and refinance it to go toward a down payment on your next investment. This then becomes a cycle that can be repeated as you continue to invest in more properties both in and outside of your current market.
Working With a Property Management Company
Once you’re ready to expand your real estate portfolio beyond your current market, you’ll need to find a trusted property management company to help you handle all of the logistics. This is especially crucial if you’re investing in out-of-town markets in areas you may not be as familiar in. Find a property management company that offers vast resources, experience, and networks that you’ll need to move forward confidently with your investments, such as American Real PM. The company handles everything from finding an ideal tenant and handling all of the maintenance to suggesting updates to the assets and handling rent collections. This kind of service will make streamlining your business much easier as you continue to expand your real estate portfolio.
American Real PM manages properties in Dallas and Fort Worth, Kansas City, and St. Louis. Many of the owners they work with do not live in the same market as their property, so you’ll be able to trust them with your investments from wherever you are. If you’re ready to expand your real estate portfolio, contact American Real PM at firstname.lastname@example.org to discuss a plan that will work best for you.