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When you buy a second home as an investment, you enter a whole new field of real estate. Some people flip homes in order to make the max profit they can, other people use their second homes to rent to people for vacations and they keep the house at one price level in order to get longevity out of it. When you buy a second home that you want to grow, you cross over into appreciation. You want your home to be worth more than when you bought it. Here is how to do that.
If you are looking to rent without your second home being a vacation home, then you are going to have to keep improving while your tenants are living inside. As the years go on, update kitchens, flooring, and fixtures. Add additions and perhaps put in a swimming pool, sauna, or hot tub. Whichever improvements you make, you can then start raising the rent.
Let current tenants know your plan, and if they can’t afford to stay, you can find new tenants who are willing to give you more money.
You may not be able to visit your property all the time, and you are going to need someone to look after it for you. That’s when a property management team comes in handy. Companies like McGraw Property Management will ensure that tenants are taking care of your home, the house is functioning properly and there is no need for repairs, and they can also find you tenants that are reputable and respectful.
This will help your property remain safe and its value remain high for when you are ready to sell.
Upgrading your home to be a smart home adds more value and can also allow you to raise the rent a bit. Installing cameras around the house, installing a smart doorbell, and installing technology like Wi-Fi thermostats make your home more efficient and worth more money. You will also continue to attract tenants that are willing to pay a higher price to live in a house with more conveniences.
Make sure your home is constantly up to code and up to date. A leak, a flood, or something breaking can cost you a lot of money and potentially cause you to forgo a month or two of rent in compensation. Have professionals come to your home once a year to check on the roof, the windows, the foundation, and the drainage of your property.
In the event there is something wrong with any of these areas, you can fix them immediately before a huge problem arises and it costs you more money to fix.
If you are able to make these improvements and maintain reliable tenants on your rental property, you will be able to sell the home and make a huge profit. If your tenants truly love your home, you may be able to sell to them directly and make a much quicker sale.
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