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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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.
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.
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.
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.
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.
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.