By Andrew J. Harrington, RMP
Real Estate Broker since 1999
Are you thinking about investing in rental properties? Now could be the perfect time to make your move. Interest rates are currently dropping, and recent declines in property values have created an ideal opportunity to invest in real estate. In just a few years, you may find yourself wishing you had acted sooner. While interest rates aren’t quite as low as they were in 2019, they are steadily approaching those levels.
When it comes to real estate investment, I always recommend a long-term approach. The goal is to purchase a property that will soon generate positive cash flow—covering expenses like repairs, insurance, and taxes. Once that’s in place, you can let your tenants’ rent payments pay off your mortgage over time. This tried-and-true strategy has been working for decades.
Imagine owning a duplex for 15 years, with two sets of tenants covering the mortgage for you. Not only would they pay off the property, but chances are it would appreciate significantly during that time, providing you with additional profit. While all investments carry some level of risk, it’s hard to imagine property values decreasing over the long term—especially in a market like Florida.
That said, one common pitfall I’ve seen is investors entering the rental market with unrealistic expectations about what their property will earn. Often, this happens because they overpaid for the property or worked with an agent or lender unfamiliar with local rental market values. Even if this happens, holding the property longer can help offset initial losses and turn the investment around.
A critical component of success is finding a property manager who can help you maximize revenue while maintaining your property. Without a trained and experienced professional, you risk unnecessary expenses, legal liabilities, and overall frustration. Managing a rental property can be complex, with challenges ranging from tenant screening to maintenance and legal compliance. Handing off your investment to someone who only dabbles in rentals can lead to costly mistakes. It’s worth the time and effort to find a qualified real estate management expert who can help you “earn more and worry less.”
In conclusion, combining a smart purchase with the support of a dedicated and knowledgeable property manager can significantly increase your odds of success in rental property investing.
Oakleaf Property Management, Inc.
Serving since 2009