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Ready to Add More Merced Rental Properties to Your Investment Portfolio?

Wisdom Property Management & Realty, Inc. • August 13, 2021
Ready to Add More Merced Rental Properties to Your Investment Portfolio - article banner

How is your real estate portfolio performing? Is it earning as much as you had hoped? Are your current properties growing in value or is it a good time to invest in additional assets? 


If you have not already considered it, think about adding more rental properties to your portfolio. There are a lot of opportunities in the Merced real estate market right now, and you should think about how you can leverage the properties you currently own to increase your assets. 


Increasing the value of your portfolio will lead to better earnings. We recommend that if you’re ready to add more Merced rental properties to your portfolio, you work closely with local experts who can help you identify the right moves to make. 


Review Your Established Investment Goals


Before you bought your first investment property or began renting out one that you inherited or once lived in, you should have established some investment goals. Those goals will help you make decisions and drive your strategy when it comes to acquiring new properties. 


It’s important to review those investment goals once in a while. Things may change for you that can require a change in course or a more aggressive growth strategy. Before you grow your portfolio, think about what you need to create the financial future that you want. Ongoing review and improvement will help you have a better investment experience. 


Selecting the Right Merced Investment Property


Be selective when you’re adding properties to your portfolio. You don’t want to grow for the sake of growth. An intentional strategy will lead you to the right properties. 


Interest rates are low, buyers are moving quickly to snap up properties, and you might find you’re making multiple offers before one is accepted. That’s okay. Take your time, inspect the home thoroughly, and get to know the neighborhood. Talk to a
Merced property manager so you can be sure the property you’re thinking about buying will bring in the rent you expect. Find out what kind of tenant pool you’ll have. Estimate what kind of repairs will be required before it’s ready for the rental market. 


Gather good data before you buy, especially when you consider how the market is always evolving. Successful investors are patient, and if you want to add properties to your portfolio, you’ll have to see beyond the current economic climate. 


Diversify Your Real Estate Portfolio


If you’re ready to increase the number of rental properties you own, you may need to diversify. If you have traditionally invested only in residential property, consider commercial spaces. Buy a small apartment building if you predominately own single-family homes. Explore investments in an HOA community if you’ve never done that before. Diversification not only grows your portfolio, it’ also reduces your risk. 


Add Doors with a 1031 Exchange


A great way to leverage the Merced investment properties you already own is by using a 1031 exchange. Under this beneficial tax program, you can sell one property and then defer the capital gains taxes on it by investing the proceeds into another property (or several properties) that are similar. Similar doesn’t mean the same. The IRS simply wants you to sell one income-producing property and buy another income-producing property.


This is a great way to unload an investment that may not be performing the way you want it to. Or, you can increase the size and strength of your portfolio by selling one single-family home, for example, and buying a couple of duplexes. There are a lot of options. 


Merced property management

Our talented Merced property management team can help you grow your investments and strategize for the future. Contact us at Wisdom Property Management & Realty to talk about your specific goals. 



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Leveraging Social Media to Market Rental Properties in California: Tips for Merced Landlords
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It is time to get social, and we’re going to insist you become an influencer even if you don’t naturally gravitate towards the likes of Instagram, Facebook, and other social media platforms. Leveraging social media to market rental properties in Merced and throughout California is essential. You gain a lot more traction on social sites than you do by simply posting a listing on Zillow or HotPads. All of your potential renters are on social media, and you should be there too. Let’s talk about some tips, assuming you’re not already going viral on the ‘gram. Part One: Put Together Your Profile A successful social media strategy starts with a profile that will attract the kind of attention you want. If you’re already a presence on social media, that’s great. If you’re just getting started to better market your rental home , be intentional about how you present yourself. Your audience will likely be potential renters who will view your page and consider the homes you have to offer. If you’re posting homes for rent on your personal social media pages, you can easily include all of the people you already know in your network. However, you also want to make sure your personal page is professional. If you’re prone to angry political posts, you might alienate a lot of potential renters on the other side. Your social media presence, as a landlord, needs to be welcoming to everyone. Generally, we recommend that you establish a separate profile for the work you plan to do sharing your rentals. This will help narrow your social media postings on that particular profile to the rental property you’re marketing or related topics. Visitors won’t get confused, and they won’t have to scroll past photos of your pets and vacations to find the homes you offer for rent. Before you start posting about your available rental properties, you’ll want to make sure you have all of the pertinent information on your profile. There has to be updated contact information, for example. You’ll also want a credible profile photo. Maybe it’s a snapshot of the property you’re trying to rent. It could be a picture of the neighborhood or even a photo of the state or region you’re in. A picture of yourself is also fine, as long as it’s professional. Reaching the Right Social Media Audiences When we’re talking about social media marketing, it’s important to understand that the audience is everything. Social spaces are crowded, and you want to reach the right people. According to the Pew Research Center, more than 72 percent of Americans use social media daily. By using hashtags, joining local or industry-specific groups, and following popular sites and spots throughout Merced, you’ll focus on the people who are looking for a new rental home or on the people who know people who are looking for a new rental home. Create a Social Media-Friendly Listing What will get the most attention on social media sites? Photos and videos. These will be your most important tools when we talk about posting your rental listing on social media sites. This is the type of content that gets attention. It gets likes. It gets shares. It gets comments. All of those things will expand your audience and increase your reach. Although text plays an essential role in social media, and you’ll use it to share details such as: Rental amount Move-in ready dates Rental qualifications Security deposit amounts Images and videos are especially crucial. You’ll want to upload clear and crisp photos so that they render well on mobile devices. You’ll want short, engaging videos that showcase your property and provide people with a glimpse of how things look. If you want to be more impactful with how you market Merced homes for rent on social media, focus on the property’s layout, show real-time room sizes, give viewers a close-up of amenities , and an idea of the property’s location. When you have special features to show off, such as walk-in pantries, garden tubs, smart home technology like video doorbells, and fenced backyards, video is a great way to show those things off while giving viewers an idea of what it’s like to actually be there. Plenty of social media platforms are built for video; you can use Instagram reels, Facebook and Instagram live videos, Snapchat story updates, and of course YouTube. Hashtags are Essential Please tell us you know what a hashtag is. They’re helpful when you’re posting because they get the attention of your target audience. Using hashtags on your posts makes them more accessible because when people search for a particular hashtag, your post will be there, ready for them to view. Use specific hashtags that identify your location, the type of property, or the neighborhood name. Try #Mercedrentals, #Mercedhomeforrent, #Mercedapartment, and similar hashtags to get attention and focus on your desired audience. Promote Your Merced Rental Listing
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