Buy and Hold

Investing in Rental Properties

Why Invest in Rental Properties?

Johannesburg and the surrounding area is currently one of the hottest real estate markets in the SA. This means that more people than ever are investing in rental properties. Buy and hold is an investment strategy where an investor will hold onto a property for a period of time. While they may sell the property down the line, it is usually rented out for income. It is important to have a plan going into buying an investment property and we can help with this. We will use a calculator to help you figure out the potential income and expenses for a rental property.

Financing Property

Financing Your Project

When investing in rental properties, you can use the same types of funding as fix and flip properties. This includes hard money, which is structured a little differently. After buying property, there is a minimum waiting period before refinancing the loan for the new appraised amount. This can vary based on the lender and program type. We can help you connect with our preferred hard money lender, Intrust Funding.

Property Value

Adding Value to the Property

Once you have the property, you will need to add some value. While you don’t need to do a full fix up of the property, you will want to make sure the property appealing to live in. Paint the wall and update the flooring. A small facelift to the kitchen and bathroom will also help. Factor these expenses into your budget before making an offer on the property. Some upgrades can increase your rental amount by 25-30 percent. Check out our blog for some ideas on how to increase value when investing in rental properties.

Managing the Property

When the property is ready to be rented, you have several options for managing buy and hold real estate. You can manage it yourself or work with a property manager. If managing the unit yourself, you will need to make sure you have a system in place before buying. In this case, you will need to put in a good amount of time and effort to keep the property running and in working order. A property manager can ease some of the time spent leasing and repairs of the property. This allows you to have more time to handle the management of the rental.

Ready when you are

Message us if you have any questions or inquiries. We would be happy to answer your questions and set up a meeting with you. Also, subscribe to get updates on our latest investment opportunities.