With real estate prices going down but rental prices going up, there has never been a better time to start real estate investing in Annapolis. You can start thinking about boosting your passive income by creating several short-term rentals that offer high RoI. Though, if you want to get started on this kind of investment, what are your first steps?
Below, you will find a list of things you need to do before you dive in. Also, make sure to consider whether you have the time to manage a large portfolio or if you need to investigate a property management company too.
Understanding the Annapolis Market
Spend time investigating the current trends when it comes to short-term rentals in the Annapolis area. Check out what the major supply and demand areas are, and where people prefer to stay in the region when visiting. Also, look at the different rental rates others set, see if you can offer competitive prices, and work out how these prices fluctuate over time.
Discover what the different properties are that might be available. Look into how they align with the needs of short-term rental groups, and learn what condition they are in.
Make sure to conduct in-depth inspections if you can to determine the current state of the location. You will need to work out how much renovation each place needs and how much that will cost you before you can start making money.
Think about how you want to finance the investment. Whether you want to get out a mortgage to buy the location or use existing equity, you might have many options available. If necessary, consider consulting with a financial advisor for a little extra guidance.
Planning Your Real Estate Investing Strategy
Consider your investment goals, such as whether you are simply creating a larger portfolio or if you are more interested in income. Plan your budget, and look for real estate in Annapolis that matches this price.
After you buy a property, invest as much time and money as you feel necessary into making it a good location for short-term rentals. You can then open it to the public.
Managing Short-Term Rentals
When everything is in place, you need to ensure you have enough time to handle the coming and going of people. You might want to be very involved, or you might prefer for someone else to take the reins.
Make sure that your listing is well-advertised and that you have high-quality photos and a good description. You want it to be as appealing as possible, but you do not want to lie about the location. Again, property managers may be able to help you in this area, including bringing in a professional photographer.
Finding the Right Property Manager
With everything you will find in this article, starting your journey into Annapolis real estate investing should be easier than ever before. Still, you sometimes might need a bit of a helping hand, and the best way to do that would be to hire property managers.
We can help you manage many of the trickier aspects of property management, including legalities, finances, and much more. All you need to do is throw us a message and we can start you down the road to a simpler-to-handle short-term rental portfolio.