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How to Make Money in Salt Lake City Real Estate Investing

Before you buy a residential investment property, you need to have a strategy in place. Today, we’re talking about a couple of different investment strategies that people use when they’re buying single family homes, plexes, condominiums, and townhomes.

High Return Rates on Investment Properties

There are many investment strategies to follow. Some investors are more concerned with quick profits and high rates of returns. To access this, you have to invest in lower value rental properties. These homes will require more intensive management and come with more risk. You’re likely to experience more turnover, frequent collection activities, and numerous maintenance issues. The properties are more work, but you often stand to make more money. The primary concern for these investors is cash on cash. You wouldn’t be as interested in long term appreciation or rate of return.

Buy and Hold Investment Properties

Another method, and one that is our favorite, is the long term strategy of buying and holding. This is good for properties with rental values in the mid-range, all the way up to homes in the luxury market. You many not gets as much cash on cash value, but you’ll have a more stable tenant with a higher income, a better credit score, and a longer tenancy. This strategy requires purchasing the right type of property, having a long term professional management plan in place, and properly maintaining the home. You’re looking for high occupancy rates and high rents.

This type of investment strategy allows you to become wealthy over time, especially if you acquire many properties. Rents will go up, and your property values will appreciate. That has been the trend for the last four decades that we’ve been involved in property management.

Many of our clients have owned the same properties for 10, 20, or 30 years; even longer. With this type of strategy, you’ll get rich slowly but surely. Spreading the risk over multiple properties is optimal.

Know your specialty, and excel there. Over the years, we have been involved in many aspects of the real estate business. We work with new home builders, mortgage companies, and nearly every facet of the real estate cycle. Our mainstay and our primary focus is property management. The work we do with real estate brokerage facilitates these transactions for our owners.

If you have any questions about how to invest, please contact us at Miller & Company Real Estate and Property Management. We have identified our area of expertise, and we’ve been doing this work for a long time. We strive every day to be the best.

Posted by: Bronson Miller on May 29, 2018
Posted in: Landlord Advice