The median house price in the U.S. is $395,126 and with Alabama's at $295,900, almost $100K cheaper, it makes sense to invest there.
Not all investment properties are worth your time, which is why understanding what to look for is key. But if this is your first investment property or time scouting out Montgomery, AL's housing market, things can get overwhelming.
Sounds like your situation? Luckily, we've got the answers. Here are three tips for finding an investment property in Montgomery, AL.
1. Secure Your Financing
Before falling in love with any investment properties, secure financing first. Get approved for a mortgage loan by a bank that will check your current income and credit score to determine whether you're a good fit. Then you'll know the amount you can afford, making it easier to find your dream investment property in Montgomery AL.
Further, calculate the tax requirements for investment properties. If you narrow down your list of options, compare how much tax you'll pay to determine whether it's worthwhile.
2. Consider Location and Property Type
Once you have a ballpark figure, figure out where Montgomery real estate is thriving.
The most popular neighborhoods are Cloverdale, EastChase, and Dalraida, because they offer a range of housing options alongside great schools. But don't fall into the trap of falling in love with the property; see it as a business and choose the most profitable one. A good rule of thumb is to avoid fixer-uppers on your first deal because they can drain your cash.
Next, decide what type of investment property in Montgomery. If you can, focus on single-family homes because they're often cheaper and more attractive for long-term tenants.
Start by contacting a real estate agent for a lead. The beauty of agents is that they stay on top of industry news and will show you the top potential investment properties. You can even take advantage of direct email marketing and contact sellers to ask about viewing their listings.
Another tip is to drive around your desired neighborhood looking for signs. A bonus is that it gives you a better feel for the location and city, which is crucial for investors.
3. Hire a Property Manager
You've found your dream investment property. Congrats!
Once you've signed the contract, contact a property management company in Montgomery that will take care of your investment. This is crucial if you're out of state or are managing multiple properties at once. Reputable managers will screen tenants and regularly contact you so you know what's happening with your rental property.
To find a reliable company, ask your current network, especially if they have investment properties in the area. You should then read online reviews to determine whether they're credible.
Get Your Next Investment Property in Montgomery, AL Today
Now that you know the top tips, it's time to search for your next investment property.
PMI River Region has spent years working with property owners to maintain their investments and keep tenants happy. We'd love to help you with your new property, so contact PMI River Region today.