Investing in rental property in Wilmington, NC (or any city!) means you must be able to distinguish between a “good” or “bad” rental property. Wilmington has a dizzying array of different areas to purchase rental properties. Here is what makes a good investment property in Wilmington:
Signs of a good rental property in Wilmington
- Gauge your risk
For any rental property you must be able to gauge how much risk you want to take on for the project. Differences in risk can be explained like this:
Very high risk property:
- Bad neighborhood
- Low price and higher rents
- Higher expenses
- More management involved
- Higher likely-hood of bad tenants
- Investment condo on a golf course
- Higher prices and lower rents (in comparison to price)
- Lower expenses
- Less Management
- Lower Likelihood of bad tenants
The vast majority of investors will want something “inbetween”. Usually a medium risk property can easily be self-managed, provides great returns, and has expenses that don’t totally eat up your cash-flow.
2. A houses that has solid foundation, mechanical systems, and is overall “strong”
Many new investors want to jump into the cheapest house possible. Maybe they heard that they need to get the best “deal” they can and in doing so will by complete garbage properties. Unless you seek to rehab a house, I advise most buy-and-hold investors to stick to houses in decent shape. A real-estate agent can usually tell if a house is in very bad shape and a property inspector will alert you to any serious issues!
3. Good rental pool
Fortunately, Wilmington, NC has a very strong rental market. I’ve never seen a property sit vacant that was priced correctly! Also, there are plenty college students, blue collar workers, and tele-commuting professionals in the city. In my experience, any rental property within the immediate vicinity of Wilmington should perform great.