Are you thinking of buying an investment property in Winston-Salem, NC? If so, this blog is for you!
As you probably know, investing in real estate carries enormous potential. Not only do you get to earn potential monthly income, but you are also able to diversify your investment portfolio to minimize risks.
The Winston-Salem real estate has been receiving a ton of attention from investors lately. According to Triad Business Journal, the Triad of Winston-Salem and Greensboro was the 4th best market for rent increases. There is a year-over-year rent growth of about 5%.
Besides potential for high ROI, the region has other multiple factors going for it. For instance, the region's economy is dynamic, the population is growing, and there is a strong rental demand from tenants.
But as with any other investment type, investing in real estate has its risks. That's why it's important to follow insider tips in order to make the most out of your Winston-Salem investment.
Today, we here at TE Johnson & Sons will give you the basics of buying an investment property in Winston-Salem. Follow our recommendations to help maximize the return on investment on your potential property.
What is the Winston-Salem Real Estate Market Like?
Winston-Salem real estate is hot right now. All indications point to a booming real estate sector. The following are some of the reasons that make the area desirable for real estate investments.
First and foremost, the population is growing. It's the 5th fastest growing city in the state of North Carolina. According to Winston-Salem Journal, a whopping 16,700 residents have moved into the city within the past 8 years.
Second, the job market is vibrant. More and more jobs are being added to the economy. The employment sectors showing the biggest signs of growth, according to the U.S. Bureau of Labor Statistics, include financial activities, trade and transportation, and information technology.
Third, property prices are going up. In fact, over the last five years, home values in the Winston-Salem market have grown by 39%.
Also, the renters' market is one of the most attractive in the region. As a matter of fact, WalletHub rated the city as one of the best cities for renters in the country. The metro area ranks #54 on the list of best rental markets in the U.S. The ranking is based on quality of life, affordability, and rental market activity.
Top Tips for Real Estate Investments in Winston-Salem
With the location locked in, the next step is to make the right investment move. That may mean, among other things, pricing your property correctly, renting to the right tenant, prioritizing routine maintenance, and even hiring a property manager.
1. Buy the Right Property
First-time investors should consider investing in single-family homes as opposed to multi-family homes. That's because a single-family home is easier to manage. You see, a huge part of becoming a landlord is dealing with tenants – and tenant issues can be a huge time sink.
Think about it: would you rather deal with a single tenant in a single-family home, or with multiple tenants in an apartment?
Also, single-family homes usually have better appreciation values than multi-family properties. Historically, demand for single-family always exists, whereas it varies a lot for apartments.
2. Correctly Price your Property
If this is your first time investing in real estate, chances are that you are unsure on how much to charge as monthly rent. If this is the case, it'd be in your best interest to hire someone that can help you in this regard.
So, consider hiring a professional property management company. A good company will have the tools and local market knowledge to help you price your rental appropriately.
3. Rent to the Right Tenant
This is a no-brainer. Every landlord dreams of renting to the perfect tenant. That is, one who will care for your property, notify you of potential issues, pay rent on time, and rent long-term. Landing tenants with such qualities is never easy, though.
To improve your chances of getting such a tenant, you'll need to screen every prospective tenant. This requires some skill and experience. So, if you are just starting out, consider hiring expert help.
A professional property management company will know what to look for in tenants' applications in order to minimize chances of landing problematic tenants.
4. Prioritize Preventative & Routine Maintenance
This is key for long-term success. If you are able to keep your tenant satisfied, chances are that they are going to reciprocate the favor by renting long-term.
Prioritizing preventative and routine maintenance means being responsive to maintenance issues. If a tenant notifies you of an issue, act fast. Or, at least, let them know that you are working to resolve it.
Of course, how fast you act should be dependent on the severity of the problem. Ideally, you'll want to respond to emergency issues within 24 hours, and non-urgent ones within a couple of days.
5. Hire a Good Property Management Company
Are you an out-of-state investor looking for someone experienced to look after your Winston-Salem rental? Are you just starting out and don't know where to begin? Would you rather use your time to do other things that matter to you the most?
If you answered "yes," to any of these questions, hiring a professional property management company would be ideal. At TE Johnson & Sons, we have the experience, resources, and contract network to fulfill all your management needs.
We can help you in all management aspects, from finding tenants to maintaining your home to collecting rent. Our specialty is in single-family homes, condominiums, and multi-family units.
In a Nutshell: Real Estate Investing Tips in Winston-Salem
Overall, now is a good time to invest in Winston-Salem real estate. To learn about the best Winston-Salem neighborhoods to invest in, read our post here.
If you have more questions or wish to work with us, contact us today. We can help you buy the right investment home and manage it for you!