Choosing your first Myrtle Beach investment property is one of the most important decisions you will make as a real estate investor. Choose well and your venture can bring you great success as you acquire additional properties. Choose poorly and you could find yourself trapped under a money pit of endless expenses and little to no profit. Here are some tips to help you in finding your first investment property in Myrtle Beach:
Tip #1: Don’t buy a “project”! – Leave the fixer-uppers to the flippers. The last thing you want in an investment property is a major renovation project. Major renovations are expensive and waste valuable time before the property is ready for rental. Instead, look for a property you can snag at a great below-market price that requires only minor repairs or cosmetic upgrades that are quick and fairly inexpensive.
Tip #2: Do your homework! – Research everything you possibly can about your future investment, including property tax rates, rental prices for similar homes in the area, all costs associated with owning and operating a rental property, what type of mortgage or financing is best for your investment, typical costs of common repairs and maintenance for the property, average costs of replacing major appliances, legal fees for leases and other paperwork, costs of properly screening prospective tenants, your responsibilities and rights as a landlord… Most real estate investors spend an average of 3-6 months compiling research before even looking at potential properties to buy.
Tip #3: Location, location, location! – No matter how great of a deal an investment property appears to be, if potential renters aren’t keen on the location, your great deal could spend a great amount of time empty. Focus on neighborhoods with good schools, lower crime rates, easy access to typical community amenities like parks and playgrounds, and easy access to shopping, restaurants and family entertainment.
Tip #4: Screen all potential tenants carefully! – Remember that while this property will become a renter’s home, it is first and foremost your financial investment. All real estate investors have at least one renter horror story – often resulting in significant unexpected expenses for the landlord. While wear and tear will happen in any property you are renting out, you want to do your best to select the type of tenants that respect the property and take care of the home as if it were their own. And when you have a great tenant, treat them fairly and try to keep them as long as possible. Less turn-over can reduce your expenses for repairing and preparing the property for new tenants.
Following these tips for buying your first investment property in Myrtle Beach will have you on your way to being a prepared, well-informed and successful real estate investor! Our knowledgeable Century 21 Broadhurst agents are here to make your investment property search a breeze!