Did you know that Memphis, Tennessee is one of the hottest investment neighborhoods in the United States? With its affordable homes and unique location, millennials in particular have found success tapping into a market they were long closed out of.
Are you overwhelmed with your real estate portfolio, or new to real estate investment? Never fear: despite market swings and unexpected expenses, real estate investment can make great passive income.
Here are some key tips for portfolio management that will keep you operating in the black.
Work With a Property Management Company
A property management company can help you expand your real estate portfolio at a rate that's comfortable for you. They have the expert tools and experience to evaluate your portfolio and determine where you can make improvements.
They can also work with your current tenants and help you avoid tenant challenges, such as failure to pay rent or evictions. You will not have to worry about dealing with maintenance requests or rent collection, either.
Paying for a property management company is a fantastic way to increase your passive income. You will free up time for yourself, and time is money. You also have the flexibility to purchase property outside of where you live and have the property manager handle everything locally.
Diversify Your Portfolio
You don't have to just purchase properties to be involved in real estate investments. There are many other options you can put your money in, such as:
- Real estate funds
- Commercial real estate
- Flipping houses
- Crowdfunding platforms
This is a great way to add diversity to your portfolio and shield your assets. If you have all of your money tied up into one type of investment, there's a bigger chance you will lose it.
Know When to Sell
If you find yourself with a significant profit on a real estate property, it may be the right time to sell and invest in something new. Talk with your property management company about signals in the market that it is a good time to sell.
Track the Market
Although the market has been trending upward for some time, that could change in the blink of an eye. Stay in the know on the condition of the market, such as interest rates, home prices, market swings, and important legislation that could affect your properties.
Keep an eye on Memphis's best neighborhoods and check if property values are going up. Know when might be a good time to jump in and snatch up another real estate investment.
Become an Expert in Portfolio Management
You shouldn't have to be intimidated by real estate investment. Whether you are new and looking for guidance, or you simply want more control over your portfolio management, we have got you covered.
Are you looking to make passive income in Tennessee with real estate investment? PMI of Memphis has all of the resources you need to get you started.
We can be your partner in portfolio management. Contact us today to learn more.