Have you started investing your money into New Orleans real estate? If so, you may be curious about how to maximize your returns for the highest profits possible. Even the savviest and most experienced investor can learn new ways to capitalize on their investments. Keep reading to learn how to maximize your real estate returns in New Orleans!
Set Your Standards
A rental property should be bringing in returns of at least 6-8%. Many properties see amounts higher than 10% annually. To choose the right property for your budget and expectations, know what you expect to make and go from there.
Consider your long-term goals rather than what seems like a hot deal at the moment. What is your investment style? Do you want to be involved or more hands off? Invest in properties you are comfortable with and have the time and resources to maintain. Do you really want to be a landlord, or would you rather flip? Don’t want to do anything? Maybe consider a REIT.
Make investment decisions that are right for you. Don’t copy someone else’s strategy and expect it to work the same way for you.
Keep Your Options Open
A savvy investor is comfortable changing their plans as the market fluctuates. Always be prepared to sell on a dime. In order to sell when you need to, don’t become too attached to a property or too comfortable.
When buying a New Orleans house to flip, be prepared for the event that it doesn’t sell in the timeframe you need it to. Be ready to get tenants to help cover the costs of mortgage and ownership. Allowing your property to sit vacant on the MLS only ends up costing you.
Have an exit strategy in place before buying a house. If the returns aren’t there or a better property comes around, you will want to be able to liquidate the house. Don’t become so tied up in a property that you let a good deal pass you by.
Finding The Right Tenants
It’s vital to have the right tenants when renting out a property. It’s worth it to have a third party company assist you in the screening process. Otherwise, screen tenants just as a professional would. You will lose money if you are constantly having to find new tenants for the home.
Have a professionally written lease in place, with every expectation clearly outlined. If the tenant needs to mow the lawn, put it in the lease that they are responsible to maintain the landscaping, keeping it in the same condition as it is on the move-in date. Your tenants should keep the property clean and treat it with respect.
On the other hand, it pays off to create a property that people want to live in. Upgrading the property and creating a nice living environment will encourage long-term tenancy. High vacancy rates will cost you a fortune in lost income. Creating demand for your property pushes local landlords to improve their game.
Finding The Right Team
Investors become great by surrounding themselves with a strong and dependable team. Build connections with your area’s top property managers, repair companies, agents, and professional property buyers! Build relationships with investors who you can possibly partner and share leads with. By having knowledgeable and experienced people on your side, you will be able to become very successful in New Orleans real estate investment!
Do you want to learn how to maximize your real estate returns in New Orleans? We can help! Send us a message or give us a call today! (504) 224-9066