Reno is home to a surprisingly booming real estate market.
The median sale price is around $525,000 and the average home only sits on the market for less than 40 days. If you're looking to start your career as a real estate investor and build a great investment portfolio, Reno is a good place to do it.
Real estate portfolio management isn't as easy as it seems, however. In today's post, we'll give you 4 steps to mastering portfolio management. Keep reading and you'll have all of the investment portfolio tips to succeed in the Reno market.
Step 1: Diversify Your Portfolio
For your investment portfolio to be successful, you should diversify it as much as possible. A healthy mix of rental properties, flipping projects, and REITs will keep money coming in from all angles. It'll also diversify your risk.
Portfolio diversification methods and risk management strategies complement each other well. The real estate market tends to fluctuate.
When a fix-and-flip isn't going to plan, having the stability of a REIT and rental income can keep you afloat. When you have trouble finding a renter, your fix-and-flip project may come through. The more diversified your portfolio is, the easier it will be to create stability.
Step 2: Perform Property Valuation
Whenever you go to invest in a new piece of real estate, perform a property valuation. This will give you clear indications of what kind of return you'll get from your investment.
For example, rental valuations are key in figuring out what you'll be able to charge tenants each month. They account for the local rental market, your investment in the property, and any issues that may need dealing with. In the end, you'll have a loose idea of your ROI on a given property before you invest, allowing you to make smarter investments overall.
Step 3: Maintain Your Properties
Regular property maintenance is essential for the long-term value of your portfolio. How much of your time and resources you allocate to property maintenance will depend on your property.
Rental properties go through far more wear and tear than buy-and-hold properties. You need to stay on top of maintenance to ensure your tenant is happy and the property remains profitable. When you have a buy-and-hold, you can inspect the property regularly and perform seasonal maintenance to keep it in good shape.
Step 4: Work with the Pros
The last step is to hire a property manager for your investment properties. As you add more and more to your portfolio, it'll become a serious challenge to stay on top of things like maintenance and accounting.
Good property management services have a network of vendors to look after your property, as well as the financial management skills to keep your portfolio profitable. Investing in help makes your life easier and will inevitably boost the value of your properties overall.
Take Portfolio Management Seriously
Portfolio management is something you have to think about when you begin property investing. Simply jumping into the Reno market with no plan in place will end your investing career before it begins.
If you want a hands-off approach to real estate investing, PMI Diversified Properties can help. As a full-service property manager, we can help you manage your properties to perfection. Contact us today to get a free consultation and maximize your investments.