Located in Alamance and Guilford counties, Burlington is a city with a rich history and a promising future. Originally an area designated to build, repair, and maintain the North Carolina Railroad track, this city flourished into a mostly residential community with a small, but tight-knit population.
North Carolina is a ripe area for real estate investments. The city of Burlington is particularly profitable due to its affordable home prices, its strong local economy, and its convenient location in the heart of North Carolina.
Moreover, Burlington boasts a high quality of life for its residents, with numerous parks and sports facilities, as well as plenty of recreational and cultural activities throughout the year.
Rental property investments in Burlington carry far-reaching potential. Purchasing an investment property means that you can create a monthly passive income and grow your long-term wealth.
If you are just starting out, it pays to follow insider tips to ensure your investment pays off. In this article, the experts at RedStone Property Management will tell you everything you should know before buying an investment property in Burlington, North Carolina!
What Is the Burlington Real Estate Market Like?
Burlington is the 18th-most populous city in North Carolina. As of today, approximately 44.5% of the city’s households are occupied by renters.
As more new people come and stay, the need for rental accommodations will grow. The city of Burlington is expected to expand exponentially in the upcoming years.
One of the main reasons why investors love Burlington is due to its affordable real estate. The median price of a single-family home in this city is almost half the national average.
This means that you can get more for your money than in other comparable areas. Plus, you can regain your initial investment quickly by renting out your property.
Top Tips for Real Estate Investments in Burlington, NC
Here are some tips to help you make the most of your Burlington real estate investment:
1. Set a Realistic Budget
Overspending is one of the biggest mistakes you can make when purchasing an investment property. You might think that a property with a higher value will translate into higher profits, but this is not always the case.
If your mortgage payments, property taxes, and maintenance costs are higher than your earnings, you’ll end up with a negative bottom line.
If you want to avoid ending in a financial crunch, you should create a realistic budget for your real estate investments. See how much you have available for a down payment and closing costs.
Additionally, you can try pre-applying for financing to see how much you could borrow to finance your investment. This will make it easier to select the price range you can work in. By selecting properties within that range, you’ll remove properties that aren’t the right fit and ensure your investment is profitable.
2. Research the Local Market
Ideally, you want to purchase an investment property in a high-rent area. Neighborhoods with nearby parks, schools, transport hubs, and shopping centers, among other conveniences, tend to be more popular among renters. A higher tenant demand typically results in higher rental rates and lower vacancies.
If you want to ensure your real estate investment is profitable, you need to ensure you’re investing in the right area. To do so, you must research the local market, keeping an eye out for areas with low crime rates, high tenant demand, and a high rent-payment-to-purchase-price ratio.
Additionally, you should browse online to see whether there are major developments underway. New educational facilities, recreational infrastructure, and real estate projects are all indicators of potential future growth.
3. Crunch the Numbers
Real estate investments don’t come without risks. Property value fluctuations, unexpected maintenance expenses, prolonged vacancies, and even economic downturns can significantly affect the profitability of your investment.
While it’s impossible to prevent some of these risks, you can ensure the long-term profitability of your investment property by making the right calculations before investing.
To ensure that an investment is profitable, you should try calculating its potential ROI. To do this, you have to divide the annual net profit (rental income minus expenses like maintenance, taxes, and mortgage) by the total investment cost (purchase price, closing costs, and renovations).
Play around with different scenarios to see what the potential return on your real estate investment in Burlington could be.
4. Partner With a Property Manager
Managing an investment property is not easy. It requires a basic knowledge of the real estate market, the ability to work under pressure, organizational skills, and plenty of time commitment.
If you don’t have experience managing a rental property or have limited time commitments, you can greatly benefit from partnering with a property management company.
A company like RedStone Property Management can help you ensure that your Burlington property is in good condition at all times. We can also help you market your property, screen potential tenants, and lease it. This way, you’ll be able to enjoy all the financial benefits of your investment, without the hassle.
Conclusion
Burlington, North Carolina, is a ripe area for real estate investments. The city’s affordable cost of living, strong local economy, and high quality of life make it incredibly popular among renters. Plus, investors can greatly benefit from the city’s low home prices!
Investing in Burlington real estate can be an incredibly profitable venture. If you’re a novice investor, it’s better to partner with a professional with a deep knowledge of the local market.
That’s where we come in! At RedStone Property Management, we’re equipped to handle all matters relating to property management, enabling us to optimize your property's performance and maximize returns. Contact us to get started!
