Buying a second rental property in Scottsdale, Arizona or Buckeye, Arizona can help you expand your business and bring you closer to your investment goals. However, managing multiple properties carries new challenges. What are the advantages of owning multiple properties, and how do you know if you're ready to buy another investment property?
Benefits of Owning Multiple Rental Properties
The advantages of adding another rental home in Scottsdale or Buckeye, Arizona to your portfolio include:
One of the biggest benefits of adding another rental property to your portfolio is the additional income. The more rental properties you own, the greater your potential profit will be.
When your rental property is vacant, it can have a drastic effect on your monthly cash flow. Without a tenant, your mortgage payment may even go into arrears if you only own one rental home. Owning multiple rental properties lets you diversify. If one property is vacant, you can continue to collect rent from your other properties.
LOWER REPAIR COSTS:
Owning multiple rental properties may allow you to lower your repair costs per unit. If you use the same repair and maintenance contractors for all of your rental units, you may be able to receive a discount. Many contractors and agencies offer service contracts or discounts for repeat customers.
Are You Ready to Buy Another Investment Property in Arizona?
While there are benefits to owning multiple rental properties, taking on a second property also means twice the risk and twice the expense. It's not a decision to make lightly. You may be ready to buy another rental property if the following are true for you.
YOU'RE FINANCIALLY PREPARED:
If you've only recently purchased your first rental home in Arizona, you should wait before you buy another. However, if you've owned your investment property for a while and you've built up equity for several years, you may be ready to buy another property in Scottsdale or Buckeye, AZ. With the help of a mortgage broker, you may be able to use your first property's equity to make a down payment on another rental property.
Another option is to wait until the mortgage on your first property is paid off, then put aside some of the positive cash flow toward a down payment on a second property.
If you have enough income and savings to handle any unexpected costs, you may be ready for another rental property.
YOU HAVE ENOUGH TIME TO DEVOTE TO THE BUSINESS or HIRE A PROPERTY MANAGER TO HANDLE YOUR ARIZONA PROPERTY:
Managing a rental property can be time-consuming. You must be ready to handle repairs, maintenance, and tenant questions on short notice. You also need to market your property, screen tenants, and collect rent. Keeping up with multiple rental properties is a full-time job. Plus, Arizona requires that all out-of-state home owners who rent out their property have someone in state to handle their property. Lucky for you, Richard Real Estate Sales & Property Management, not only handles real estate sales, but manages properties throughout the East & West Valley.
Investing in rental property is a big decision, and so is the decision to transition from owning one property to owning multiple properties. Only you can decide if the time is right. If you’re ready to make a real estate investment in Scottsdale or Buckeye, Arizona call Richard Real Estate Sales, LLC at 623-386-8762.
Being born and raised in Arizona and living in Buckeye gives me a distinctive advantage over other real estate agents. Click here to view current homes on the market