How to Create Wealth with Boston Real Estate Investments

Real estate investing may be one of the best ways to create wealth. While it doesn't happen for every investor, plenty of millionaires make more money from real estate than any other investment. 

Furthermore, real estate has historically been a stable investment because it isn't as susceptible to short-term fluctuations as the stock market. In addition, investors get a physical, useable asset for income and tax benefits. So, are you ready to take the plunge and start building your wealth through real estate investing strategies? Our Boston property management experts take a look at how to create wealth investing in real estate.

Learn About Leverage

Leverage is borrowed money (like a mortgage) to increase the potential return on a real estate investment. The use of leverage allows property owners to enhance the potential for returns. Still, it can also increase risks if something goes amiss, like if the price of your rental property decreases.

When used correctly, leverage is a highly effective weapon. The long-term effect is that it can translate into significant returns and multiply your money over time. This could enable investors to make significant returns each year on a property purchased with only 20 to 25 percent cash down.

Find More Ways to Increase ROI

Return on investment (ROI) is the ratio of the profit you get from an investment compared to its cost. However, a good ROI isn't automatic without the right strategies to improve returns. 

One way real estate investors can boost ROIs is by charging more for rent. Of course, increasing the rent each year without sound justification isn't always a sound business model. Still, there are other things property owners can do to increase the potential value renters see in a rental home and support a rate increase.

Upgrade the Property

Every real estate investor wants to see their property appreciate and attract better renters, but it takes time. While you wait for an investment property to appreciate, there are a few immediate actions that property owners may take to increase the value of their rental property and make it more attractive to potential renters.

• Upgrade kitchen and bathroom fixtures. Kitchen and bathroom fixtures, such as faucets, sinks, and sprayers, can become discolored, worn down, and antiquated over time. Updating these features can improve the look and feel of the home. 
• Install new countertops. Cheap laminate countertops can crack and discolor with use. Replacing the countertops can be an inexpensive way to upgrade the value of your property.
• Replace the flooring. Installing a new floor in specific rooms or the entire rental property is a practical approach to raising home values and rental rates.
• Add storage options. Property owners can dramatically improve the appeal of a rental property by adding more storage options.

Making smart upgrades that pay off requires experience! Work with the best property management company Boston offers to choose the best updates. 

Allow Families with Pets 

Residential property managers can tell you that many Boston renters feel that finding pet-friendly homes is important when looking for a rental property. Property owners who welcome pets can increase their rental income by charging higher pet deposits, non-refundable pet fees, or pet rent.

Add Amenities Renters Want

Many renters also prioritize a good layout and plenty of space as important features in a potential rental property. A reserved parking space was the runner-up, with many tenants willing to pay a premium for one.

Use the Mortgage Paydown to Your Advantage

When residents pay their monthly rent, Investors apply part of that money to pay off the mortgage. As more money goes towards the principal of the mortgage, the more equity ownership you have in your real estate investment. The longer you own an investment, the more equity you build, accelerating each year.

Continue to Build Your Portfolio

Creative real estate investing won't make you a millionaire overnight. However, with each new property in a competitive real estate market, your investment income grows. Continue to grow your portfolio to find more financial freedom.

Of course, adding rental properties to your portfolio means more work managing those properties. This is when hiring the best property management company Boston offers can help by taking the everyday tasks off your plate and helping renters feel at home!

Take Advantage of Tax Deductions

Many landlords lose money each year because they don't take advantage of tax deductions. Rental properties offer more tax benefits than many other investments.

Work With a Boston Property Management Company to Build More Wealth!

As a real estate investor, the best way to grow wealth with rental properties is by working with a Boston property management company. The right property managers help property owners choose the right upgrades, offer amenities that tenants want, and maximize tax deductions to improve returns. 

CHARLESGATE Property Management has years of experience working with Boston real estate investors to help them grow their wealth. Reach out soon to learn how our property management services help property owners generate more wealth!