What's Next After Buying Your First Rental Property in Philadelphia?

What's Next After Buying Your First Rental Property in Philadelphia?

Did you know the average home value increases by around four percent every year? When you start to buy property, you can almost guarantee your home will appreciate the longer you hold onto it.

Once you have passive income from your first rental property, it's much easier to expand your portfolio. So, how exactly do you increase your property portfolio as a real estate investor?

Read on to find out.

Work With a Third Party

A property management company has the experience and market knowledge to manage your property portfolio. For example, they can do a rental valuation on each new property you acquire. This will help you determine how high or low to price the rent.

In addition, you can outsource much of your work to the property management company. You will be able to expand your portfolio without worrying about if you can handle the extra work.

A property management company will also take care of things like tenant screenings and evictions. You can rest easy knowing that your property is in safe hands, and you'll have constant rental income flowing.

Even if you spend money on third-party property management, it can only benefit your rental property business. It is a small price to pay for drastically increased income.

Evaluate the Philadelphia Rental Market

Before buying more property, you need to know your local real estate market. Educate yourself on the best neighborhoods in Philadelphia, the average rental prices, and how quickly you can turn a property if you need to sell.

This is key if you're a first-time landlord or if you are new to the Philadelphia area. You don't want to make any uninformed decision when you work with large assets, such as real estate.

Look at Liquid Assets

When you invest in real estate, liquid assets are crucial. You need an emergency fund so you have money to take care of things like emergency repairs and maintenance.

Before you expand your property portfolio, make sure you have enough liquid assets to cover unforeseen circumstances.

Invest in Fixer-Uppers

If you have the time and resources, fixer-uppers are a great way to make a lot of extra money. You can either transform a property to rent out, or flip it and put it back on the market.

It is important to work with experts when you decide to buy a fixer-upper. There may be damage or problems that you can't see when you do a normal walkthrough.

Scaling Your Property as a Real Estate Investor

If you're a real estate investor, the quickest way to bring in more income is by scaling your business. With this guide, you can feel confident in your rental property portfolio if you scale correctly.

PMI Greater Philadelphia is here to assist you with all of your property management needs. With knowledge and experience in the Philadelphia rental market, we can take control of your property portfolio.

Are you interested in working with us? Reach out to us today if you have any questions or want to learn more.