Investing in property in Southeastern North Carolina can seem overwhelming with so many moving parts, but it doesn’t have to be! Here are some key factors every property investor should keep in mind when looking for the perfect investment opportunity.
What To Look For In A Property
When searching for an investment property, savvy investors prioritize several key factors. First and foremost is the location, as it plays a pivotal role in determining the property's rental potential. Additionally, assessing the overall condition of the property is crucial, ensuring it meets the standards for attracting desirable tenants. Investors must also review any covenants and restrictions associated with the property such as Homeowners Associations, as these may impact lease durations. Finally, targeting areas within close proximity to schools, beaches, and universities in sought-after counties ensures a steady demand for rentals.
What Rents Well?
The ideal rental property offers features tailored to potential tenants' preferences. Single-family homes have been in high demand post-COVID, and they are favored for their extra space compared to condos and townhouses. In the Wilmington-area, a three-bedroom, two-bathroom layout is highly desirable, as well as homes with garages for the added storage convenience. Additionally, a fourth bedroom offers significant value in the age of remote work by providing versatile options for a dedicated home office or flexible living arrangements.
Property Upgrades
When advising a new property owner on upgrades, our approach at Sweyer Property Management focuses on prioritizing key aspects. Ensuring the property is move-in ready takes precedence, attracting higher quality tenants and maximizing rental income. A thorough cleaning is imperative, setting the stage for a positive tenant experience. While updated bathrooms and kitchens are beneficial, they aren't always necessary. However, investing in a fresh coat of paint and updated flooring can go a long way and may be considered a worthwhile operating expense for tax purposes. While a washer and dryer are optional, a refrigerator is a must.
What Locations are Renting Best in the Wilmington Area?
In Wilmington, certain areas boast the highest demand for rentals. The Pine Valley and Ogden areas, along with the 28411 and 28403 zip codes, are prime locations. Additionally, properties in Midtown, en route to Carolina Beach, and those with sought-after amenities command increased rental rates, potentially yielding up to $200 more per month. Downtown, especially within walking distance of Front Street, is also a hot spot for renters.
How to get Started
For property investors who are local or residing outside of Wilmington, the optimal starting point is reaching out to Sweyer. We will have a detailed discussion about your investment goals and specific areas you're interested in. Given the current scarcity of available properties for sale, it's crucial to collaborate with a real estate agent. Once connected, Sweyer works hand-in-hand with your chosen agent, carefully evaluating properties sourced from the MLS, scrutinizing rental rates, and assessing key features to ensure investors can make well-informed decisions.