Smart real estate investors are always thinking about both long term and short term financial goals. If you don’t have established goals and a clear strategy for achieving those goals, you’re not going to know how to look for the right opportunities and where you should buy your next rental home.
Owning one or two rental properties in Indianapolis is a great way to earn some consistent cash flow while your assets grow in value. If you have not already considered it, think about adding more rental properties to your portfolio. There are a lot of opportunities for growth right now, and you should think about how you can leverage the properties you currently own to increase your assets.
It doesn’t matter if you have one property or 10; consistently adding assets will give you an opportunity to earn more. Just make sure you surround yourself with professionals and take a smart approach to adding more properties to your portfolio.
Before You Buy: Choose the Right Indianapolis Investment Property
This is an excellent time to buy and hold real estate investments in the Indianapolis real estate market, but you want to make sure you’re buying a property that fits your investment goals and contributes to the growth of your portfolio. Be selective.
Choosing the right property is better than jumping on any deal that you come across. Take your time inspecting the investment, getting to know the neighborhood, and understanding the local tenant pool. Talk to local Indianapolis property managers like our team at Red Door Property Management. We know what makes a good investment property because we manage them throughout the region. We can help you move towards what you need and avoid what you don’t. We can also help you estimate how much rent will come in, how long it will take you to find a great tenant, and what kind of repairs and maintenance will be necessary before you even put it on the rental market.
This is the data you need to evaluate before you buy, especially when you consider how the market is always evolving. Successful investors are flexible, and if you want to add properties to your portfolio, you’ll have to see beyond the current economic climate.
Diversify Your Real Estate Portfolio
If you’re ready to increase the number of rental properties you own, you should take some time to consider diversifying your portfolio. There are a lot of opportunities in multifamily housing right now in the Indianapolis market. There’s new construction going on to keep up with the demand for well-maintained rental housing. Explore neighborhoods, markets, and financing that you hadn’t considered before. Diversifying your portfolio leads you to more properties and it also decreases your risk.
Add Doors with a 1031 Exchange
A great way to leverage the Indianapolis investment properties you already have is with a 1031 exchange. Under this program, specifically designed to encourage real estate investment, you can sell one property and then defer the capital gains taxes on it by investing the proceeds into another property (or several properties) that are similar. By similar, the IRS only means that your new investment properties have to be income-producing as well. You cannot sell a rental property to buy yourself a vacation home.
This is a great way to unload an investment that may not be performing the way you want it to. Or, you can increase the size and strength of your portfolio by selling one single-family home, for example, and buying a couple of duplexes. There are a lot of options.
We are here to support you in every part of the investment process. Whether it’s Indianapolis property management or assistance in choosing the next best investment, contact us at Red Door Property Management.
