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Turnkey Real Estate Investing

3 min read

3 Key Rental Property Criteria for Your Buy-and-Hold Portfolio

Fri, Nov 20, 2020

buyandhold-criteriaforinvestmentproperties-whattolookforinarentalDo you know what makes a good long-term rental property? As real estate investors, we must never invest blind. We don’t want to snatch up investment properties just because they’re there. No — each investment we make should be an intentional, perfect fit for our portfolios.

Of course, that’s easier said than done, isn’t it?

As a passive real estate investor, it’s all-too-easy to ignore the little details when it comes to your investment properties. Not only is this where REI Nation shines — we know the devil is in the details! — but it is also where so many things slip through the cracks in the hands of less experienced investors, renovators, and management teams.

We’re not saying that investors should get lost in the weeds. However, the details all add up. You no doubt have criteria in mind for the types of properties you want to buy and invest in. You have portfolio goals and a vision for passive wealth-building.

But at the end of the day, are the things that maximize your investing potential on your radar?

3 Qualities Shared by Great Investment Properties

You would live there.

For some reason, many people expect less from a rental property than they do a home they would buy and live in themselves. This is partly to do with the reputation of scummy landlords and poor maintenance that has invaded the general consciousness of society, but it’s a damaging picture for investors to hold on to.

In rental investment, resident retention and longevity are key to long-term success. Because of this, we have to consider an investment property as we would any home. When we buy a home, we expect to be living in it for a while. In fact, the NAR reports that, as of 2018, homeowners typically live in the same home for a median of 13 years.

Of course, this number fluctuates by market. It tends to be lower in urban areas and places with a wealth of new residents.

The point is, of course, that when you buy a home, you expect to be there awhile. You want it to be comfortable, in good condition, servicing your daily and familial needs, and to be free of annoying flaws.

Investors shouldn’t expect their rental properties to fit their definition of a dream home. However, we should be able to comfortably and happily envision ourselves living in the properties we own. This ensures that standards are being kept and that our residents enjoy and want to stay where they are. It’s the reason we have such exacting standards when it comes to our renovations and management teams!

Don’t make the mistake of expecting less from a rental than you would from any home. For our part, REI Nation invests in affordable properties or for the upper-half of earners in the area. Our properties aren’t cheap but prioritize longevity and stable residents.

Be sure to check out: In Excellent Property Management, the Devil is in the Details

The market is headed in a good direction.

The biggest question that investors have from the very beginning is simple, but difficult to answer: where should I invest?

While many factors go into determining a great investment market, the most important thing is that the market is poised and headed for growth. Market growth happens in a variety of ways, but for the sake of real estate investing, the key indicators are:

  • Population Growth
  • Economic growth and diversification
  • Housing demand and appreciation

This is where we see how numbers play a role in our investment decisions. Mapping historical trends and stability over time can help you gauge how worthwhile an investment market is for the long haul.

It’s well managed.

You can have a great property in a perfect neighborhood in a key market. However, if that property is not well managed, it might all be for naught. Listen to us, real estate investors: nothing is more important than how your properties are managed.

At REI Nation we don’t believe in being “good enough.” We’re not satisfied with 98 percent good — we want to chase that missing two percent. We ask questions of our residents, vendors, and investors: what can we do better? Our dedication to excellence in customer service, in systems, training, renovations, and management means that we get the job done with fewer hands on deck without compromising quality.

We understand there’s a temptation to go with a “more affordable” management strategy. However, this is the area in which you cannot afford to compromise. For the long-term stability, success, and quality of your rental properties, set your sights on top-of-the-line management.

Get the ultimate turnkey experience with REI Nation. Start building your passive real estate portfolio today!

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Chris Clothier
Written by Chris Clothier

Entrepreneur, writer, speaker, ultra-endurance athlete, husband & father of five beautiful children. Chris puts these natural talents on display every day. As a partner at REI Nation, Chris addresses small and large audiences of real estate investors and business professionals nationwide several times each year. Chris is also an active writer, weekly publishing real estate, leadership, and endurance training articles.