How to Invest in Real Estate: 10 Keys to Maximizing ROI

  • 1 month ago
  • 0
how-to-invest-in-real-estate

How to Invest in Real Estate: 10 Keys to Maximizing ROI

How to invest in Real Estate? Working a 9 to 5 is a respectable way to earn a living, but many Americans are left with only enough money for bills, everyday living expenses, and a little bit for savings at the end of each month. There must be a way to make that money work for you and build long-term wealth.

That’s where investing in real estate comes in. Investing in property provides a tried-and-true avenue for building long-term wealth through mostly passive income, which means you won’t have to invest tons of time down the line in order to maximize your return on investment (ROI).

Today, we’re focusing on the vibrant real estate landscape of Westerville, Ohio. This luxurious locale is primed for strategic real estate investment, providing the perfect opportunity for savvy investors to start building long-term wealth through real estate today.

We’re covering key factors to consider when making an investment in property, reasons why Westerville is an ideal market, and how investors may apply our advice to virtually any real estate market in the nation and still come out ahead.

How to Invest in Real Estate – Key Considerations for Investment Properties

Not all properties are created equal. Some will inherently offer more upside with minimal time and effort and, in turn, result in an overall greater ROI. Here are a few key considerations to keep in mind when selecting your investment property.

1. Location

You can’t even bring up the topic of real estate without mentioning the cliché phrase: “Location, location, location.” Sure, it’s overused in the real estate industry, but that’s because it’s of the utmost importance.

You want to pick a property that’s located in a coveted neighborhood like Westerville. As a primary suburb of Columbus, Westerville offers access to major amenities, reputable schools, convenient public transportation, and thriving employment opportunities.

Homeowners will clamber at the opportunity to move to Westerville, especially if they’re already living or renting in the Columbus or greater Ohio market. This will attract good tenants who want similar convenience and luxuries but cannot undertake the massive investment that is home ownership.

Research the area and make sure it offers the same desirable traits as Westerville’s market before you start house hunting. Your ROI will depend on it.

2. Market Trends and Growth Potential

Analyzing the market can be tricky for market newcomers, but it is an essential step in ensuring you’re poised to benefit from the market. Generally speaking, desirable markets where you’re already seeing an uptick in real estate activity will give you a clue as an investor if your property value and, in turn, the amount of rent you are able to charge is on the upswing.

Westerville fits the criteria on all accounts. More and more city dwellers are falling in love with the charm and amenities of the neighboring suburb and, with an increase in WFH opportunities, they are becoming increasingly willing to leave the city.
Westerville is also experiencing robust population growth, which fuels demand for housing and rental options. A savvy investor can capitalize on this trend, purchase an attractive property to house one or two families, and start making a return on their investment in relatively less time than has been historically possible.

For many reasons, Westerville’s market is trending in the right direction for investors to secure an excellent portfolio acquisition now.

3. Property Condition and Maintenance

You can attract a whole host of tenants by buying property in Westerville, but not all properties will offer the same advantages. For example, fixer-uppers may require an additional investment in much-needed repairs before you can even think about marketing the property and finding tenants for the space.

With the competitive real estate market that’s been present in Westerville for the past few years, there’s been more demand for houses and, as such, more new construction homes. A property that is brand new holds a lot of appeal to investors and tenants alike, making it a great buy, but that doesn’t mean you can’t leverage value from an older home too. Some tenants may fall in love with the classic craftsmanship and old-world charms.

So, to maximize ROI, it’s important to identify properties in good condition that require minimal upfront maintenance and include marketable amenities and features that will attract tenants.

4. How to Invest in Real Estate – Rental Income Potential

The current average rent per square foot in Westerville is approximately $1.50. That’s below the national average and significantly below some of the rent prices in major cities like Columbus.

As the real estate market booms and the demand for housing against limited inventory continues, that number will continue rising, meaning you have some wiggle room in your asking price for rent if you purchase a rental property in Westerville.

What’s even better about this fact is that everyone wins: you get to collect some handsome ROI to pay down the mortgage and take another step closer to truly owning the investment property, your tenant gets an attractive rate in a coveted area, and everyone is happy.

With competitive rental rates and a stable rental market, Westerville presents opportunities for investors to generate consistent rental income and achieve attractive cash flow from their investment properties.

5. Cash Flow and ROI

Speaking of cash flow, mismanaged and/or insufficient cash flow is one of the main reasons new businesses fail in today’s economic climate. So, if you don’t want to fall flat on your face while beginning down the road of property investing, you’ll want to make sure your investment is poised to grow and budget to have cash on hand for unforeseen repairs.

For the best results, you’ll need a financial analysis, including rental income projections, expenses, financing costs, and potential appreciation. Investors with a business or finance background should have no issue wrapping their heads around the numbers, but others may prefer outsourcing the task to an accountant, financial planner, or trusted real estate investment advisor.

Once you have the numbers, you can accurately assess the profitability of their investment properties in Westerville. Strategies such as optimizing rental rates, minimizing expenses, and leveraging financing options can further enhance cash flow and ROI, making Westerville an appealing destination for investors seeking solid returns on their real estate investments.

6. Property Taxes and Expenses

We won’t sugarcoat it—investing in real estate is one of the most approachable ways to build long-term wealth by putting your credit or on-hand capital to work for you today, but it’s not “easy” per se. It requires some knowledge, acumen, and risk tolerance to succeed.

So, we better not overlook expenses beyond simply the mortgage payments. Property taxes and expenses are very important considerations for investors in Westerville, or really anywhere in the United States, as they may significantly impact the overall profitability of your investment property.

Westerville offers a favorable real estate market, so you’d be buying in a market where the general ROI upside outweighs the run-of-the-mill expenses like maintenance costs, insurance premiums, property management fees, and utilities. It’s also possible to implement strategies to minimize expenses or offset their impact on your bottom line, such as utilizing tax deductions, adopting cost-conscious maintenance practices, and practicing or outsourcing for efficient property management.

Using strategies such as these helps you maximize ROI and tenant retention, so the cash will keep flowing and provide a way to stay ahead of the game.

7. Market Stability and Risk Factors

Did we mention you need a stomach for some risk tolerance to succeed in property investing? Luckily, Westerville offers a very stable market that has only shown growth over the years and, despite what some critics may believe, the market is predicted to continue rising for the future.

Nonetheless, keeping an eye on factors such as economic fluctuations, changes in market demand, and regulatory changes can be beneficial. Diversification, thorough market research, risk assessment, and contingency planning help investors identify and manage risks quickly and effectively, ensuring long-term success in the gold mine that is Westerville’s real estate market.

8. How to Invest in Real Estate – Property Type and Market Demand

Westerville is certainly not unique in being a seller’s market; nationwide, we’re seeing a huge uptick in housing demand and not enough inventory to satisfy that demand. Investors can use this to their advantage, as even would-be homeowners in Westerville may find themselves in need of short-term living arrangements while they hold out for a great deal on their dream home.

It’s important to identify the property type you may want to attract tenants such as these. Do you foresee yourself renting a whole house to a single family, or is a property that can fit two or more tenants more desirable?

You’ll need to know what might be best for your bottom line before you begin making offers, but the current state of the market stacks the deck in your favor.

9. Community and Lifestyle

Community and lifestyle play a significant role in the investment potential of a property. Properties located in vibrant communities with a strong sense of belonging, quality amenities, and a desirable lifestyle often attract tenants and homeowners seeking an enriching living experience.

Features such as access to parks, recreational facilities, cultural attractions, and community events contribute to the overall appeal of a property. Additionally, neighborhoods with low crime rates, well-maintained streets, and good schools are highly sought after by families and professionals, ensuring long-term demand and property value appreciation.

Investing in properties that offer a high-quality community and lifestyle experience can lead to stable occupancy rates, satisfied tenants, and a strong investment return.

10. Developing a Long-Term Investment Strategy

As Benjamin Franklin once said, “If you’re failing to plan, you’re planning to fail.”

We can take the above tips and tidbits about investing in properties, but making money today is not the overall goal. If it were, we’d be fine with the aforementioned 9 to 5 that we are working so hard to break out of.

We need to leverage what we know about making a smart property investment, apply it in a lucrative market such as Westerville’s, and keep sight of long-term goals. Ask yourself: where do you see yourself in five years? Ten years? Will you stop at one rental property as a way of making passive income, or do you plan to build a certified real estate empire in the suburb of Westerville?

The choice is yours.

How to Invest in Real Estate – Why Westerville?

We’ve touched on the many reasons Westerville makes a great place for real estate investors to purchase property, but what really sets the locale a head and shoulders above the pack?

Well, Westerville stands out as a prime destination for real estate investment for many reasons:

1. Location: Being a hop, skip, and jump from the major metropolitan mecca of Columbus offers unparalleled advantages. The city’s proximity to major amenities, including shopping centers, dining options, and recreational facilities, makes it highly attractive to tenants and homeowners seeking convenience and a vibrant lifestyle.

2. Schools: Westerville’s access to top-rated schools and healthcare facilities adds to its appeal, making it a preferred choice for families.

3. Market Health: Westerville boasts a robust and resilient real estate market characterized by steady growth and stability. The city’s strong economic fundamentals, with a diverse range of industries and job opportunities, contribute to a consistent demand for housing.

4. Growth Potential: With a track record of property value appreciation and a supportive regulatory environment, Westerville offers a conducive setting for investors to achieve long-term financial success in the real estate sector.

Westerville’s community spirit, friendly neighborhoods, well-maintained parks, and recreational amenities create an inviting atmosphere for residents. There’s a lot to love about Westerville, as home buyers and property investors have come to understand.

How to Invest in Real Estate – Closing Thoughts

Investing in property may seem daunting at first, but, with a little knowledge and guidance, you can use it as a method for securing long-term wealth, helping pay off your own mortgage, set aside money for retirement, finance your children’s education, or, who knows, take a nice vacation for a change? So, how to invest in real estate?

It starts with a single step: contacting us today to purchase your first investment property.

Our team is seasoned in the local Columbus and Westerville Ohio market, making us the best candidates for identifying great properties with excellent ROI upside. You’re in the best hands when you work with us, but don’t take our word for it; put us to the test.
Contact us now to find out more! (614) 316-3324  Dimitri.

Join The Discussion