Spokane Investors obviously understand that there’s a certain amount of risk associated with buying a property for the sole purpose of renting it out. There are of course ways to mitigate that risk.
#1 – Budget Wisely
Based on your cash on hand, income, recurring expenses, and expectations for the next few years, you should determine how much you can put down and how much you can spend on a rental property. Many Spokane real estate investors, especially beginners, make the mistake of going over their budget because they get emotionally attached to a certain property. The safest way to avoid this risk is to focus exclusively on rental properties that you can afford.
#2 – Diversify
Diversification is a proven way to reduce risk in any investment strategy, including real estate. By owning multiple investment properties, you diversify your rental income sources. Even if one of your Spokane properties remains vacant for a month or two, your other properties will still be generating revenue. You may also want to invest in different markets as well as different property types (single-family homes, apartments, condos, townhouses, etc.).
#3 – Property Management
Hiring a professional property management company will lower the risk associated with running a rental property. Property managers are professionals who know how to optimize the occupancy rate, enhance rental income, screen tenants, and deal with all their needs. You don’t have to reinvent the wheel by being a DIY landlord or Airbnb host. Allow a professional to take tasks off your plate so you can devote energy and time to other facets of your business.
If you’re new to investing or are looking to add another rental property to your investment portfolio, give us a call at 425-385-9014. We’d be happy to sit down with you and go over the programs we have available for your investment strategy.
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