How many Arlington rental properties do you own?
We work with a lot of landlords who own only one rental home. We work with some investors who have a handful of properties. Others are actively growing their portfolios, acquiring what they can when they can in order to build a stronger and more profitable real estate portfolio.
There are several ways to grow your investment portfolio. You can acquire additional rentals. You can diversify the types of properties you invest in. You can also help your existing assets earn more money for you.
If you approach the idea of growth with the same mindset as an entrepreneur or a small business owner, you’ll quickly find that there’s a lot you can do to optimize what you earn and position yourself to continue growing. There are certainly challenges in the current market and economy, but with the help of creative professionals and solutions, you’ll work around any challenge that stands in your way.
Establish investment goals and criteria. Implement some systems that will help you move successfully through the process of growing with little stress and hassle. Most importantly, surround yourself with experts.
Here are some of the tips we can offer you as experienced real estate investors who also manage investment properties for others.
Establish a Network of Real Estate and Property Management Experts
Building a profitable investment portfolio of rental real estate is a lot easier when you’re talking about goals, challenges, and opportunities with a set of like-minded professionals who have different levels of experience with real estate investing.
When you decide you want to grow and you know that you’ll need to do some different things in order to reach your investment goals, get in touch with Arlington property managers, real estate agents, brokers, lenders, and vendors who work with the types of properties that you’re hoping to acquire.
Putting together a well-rounded network of people who can provide advice and strategies based on their own experience will help you make smart decisions and see opportunities that you may have missed. These contacts can even help you identify some gems on the market currently, or show you how to leverage what you already own in order to build a stronger investment portfolio. You’ll get more resources and better access when you have a strong network.
If you’re not already working with an Arlington property manager, now is the time to partner with one. Not only will you get some great resources and assistance in the leasing, management, and maintenance of your current assets, you’ll also have someone telling you all the things you need to know about a property you may be thinking about buying. You can ask about potential rental values, for example, and how much money you’ll have to budget for repairs and renovations before it’s rent-ready.
Grow by Diversifying Your Arlington Investment Portfolio
Size matters, but a growing and successful real estate investment portfolio isn’t only large. It’s also diverse.
The last few years have been crazy in the housing market. We’ve seen a lot of ups and downs in the Northern Virginia real estate market, but the rental market has always remained strong. People will always be moving here for work and school. It’s a unique area that’s close enough to Washington, D.C. that there will always be a high demand for quality rental housing.
Multi-family investments have proven to manage the fluctuations in economic shifts better than any other investment type. If you’ve only purchased single-family homes as rental properties, consider looking at multi-family investments. There’s less risk, more income streams, and an economy of scale that keeps expenses down when it comes to maintenance, landscaping, and pest control.
On the flip side of that advice, if you’re only focused on multi-family properties or vacation rentals, now is the time to perhaps consider long-term single-family home investments. People appreciate space and privacy, and you’ll have a new tenant pool eager to rent your single-family home once you have one to offer.
There are plenty of ways to diversify. You can buy different property types, you can look at different asset classes, and you can move into this market from somewhere else. You can also utilize a 1031 exchange.
Find an Arlington Property Management Partner Focused on Investment Growth
We’ve talked about the importance of surrounding yourself with experts, specifically a good property manager.
Make sure you choose that management partner wisely.
If you’re renting out one home and you plan to stop there, a property manager who simply finds tenants, collects rent, and attends to maintenance is maybe all you need. However, if you want to grow your investment portfolio, you’ll need a property management partner who specializes in rental real estate investments. Look for someone who has built a business on helping investors grow their portfolios. You’ll find that you make better decisions thanks to the expertise and resources a good property manager can provide.
Property managers are often experienced investment professionals themselves. Look for a manager who has personal as well as professional experience. We’re real estate investors, and we know your pain points and your challenges. We also have some great systems for solving them.
The right property manager will provide the resources, technology, and expertise in the local Arlington rental market to help you set new investment goals and grow the portfolio you currently have.
Learn from Your Mistakes
Mistakes are easy to make, even for experienced investors.
It’s easy to forget that we’re supposed to learn from those mistakes.
As you grow, you can expect some growing pains and some unintentional missteps. Our advice is to learn from the small mistakes and avoid the biggest mistakes. You can protect yourself from the more expensive mistakes by learning from people who have already made them. Some of the most common errors we see with investors who are trying to grow include:
- Failing to diversify
- Grabbing any available property instead of making strategic choices
- Underestimating the cost of maintenance and repairs
- Lacking a property management plan
Growth doesn’t happen overnight. Take the time you need to do it right.
We can help you grow your portfolio and enjoy more profit and more success. Please contact us at Comfort Property Management. We lease, manage, and maintain investment properties throughout Northern Virginia, in Arlington, Alexandria, Fairfax, Falls Church, McLean, Ashburn, Sterling, Springfield, Reston, Chantilly, Manassas, Centreville, and Herndon.