In today’s unsteady economy many investors are looking for a safe place for their money to land that not only has a potential for an increase in equity but also has a possible cash flow – so as a result a natural choice is real estate in the Indianapolis Indiana market. Real estate purchased in a down economy is ideal and is how many current wealthy individuals have decided to successfully invest over the years.
The old adage of “Buy Low and Sell High” couldn’t be more true in today’s real estate market. However, contrary to a couple of years ago in order to achieve this realization investors must be willing to hold onto their investments and wait out this down economy. In the meantime you will need the help of a qualified and professional property management company.
Whether you have one or 100 single-family rental homes or an apartment complex, I can’t stress enough the importance of a property manager in the success of a rental property. It is very important to find a property manager that understands your long-term real estate investment plan.
It is very easy to find anyone that will help you rent a house in Indianapolis for a fee. It is much more difficult to find a competent and experienced management company that understands the importance of cash flow analysis as well as the importance of maintaining your real estate investment asset/portfolio as a whole. Maintaining your real estate investment includes effectively marketing your property, qualifying applicants, effective rent collection techniques, tenant retention as well as assisting you in understanding the need to complete certain maintenance items or even large capitalized expenses in order to ensure the longevity of your real estate asset.
As it relates to maintaining your real estate investment you will want to make sure you find a management company that shares the same philosophy that you do. If your philosophy is to hold off on maintenance as long as possible to keep costs down vs. a more proactive approach to both short-term and long-term maintenance issues this is important to understand upfront.
I find that many people don’t take the appropriate amount of time to truly prepare for the financial responsibilities of being a property owner rather than a property occupant. I find that people often don’t consider all of the associated costs – property taxes, insurance, utilities while is it unoccupied, lawn care, mortgage payment, simple and large maintenance issues and any bookkeeping and accounting work.
As it relates to maintenance items obviously this is directly linked to the age and quality of the home. However, you need to be sure that you are appropriately accruing for both normal wear and tear as well as larger capital improvements such as a new roof or water heater. It is easy to not think about a roof on a home you are not occupying, but you will quickly remember when you have to cut a check to a roofer.
I truly believe that investing in real estate in Indianapolis Indiana is a “No Brainer” however you need to be
smart and make sure that you surround yourself with a team that will help you navigate the real estate market so that you can achieve both your short-term and long-term goals. A team that will help you from the beginning in the identification of the right real estate property investment scouting and purchase, rehab of the property, marketing, tenant screening, tenant placement, rent collection, maintenance and bookkeeping.
Silver Property Management Inc., along with its in house real estate, construction, & rehab companies Silver Realty & Silver Construction, provide a dynamic one-stop shop for the Indianapolis real estate and property investment market. We are able to assist anyone looking into single-family or multi-family real estate in the Indianapolis market. With over 350 single-family homes and over 400 multi-family units under management we have mastered the skills necessary to effectively help any individual succeed in the real estate market today and in the future. We have the unique ability to offer a synergy of services working together to promote a successful real estate investing environment for both novice and seasoned investors.
Article provided by Lisa Andrews, owner Silver Property Management Inc. For more information on Silver Property Management or Silver Realty please visit us at www.spmindy.com or our property management services page.