Lewiston Rental Property Investments—They’re Out There!

When any investor first begins to mull over the idea of acquiring a rental property in Lewiston, it’s usually in competition with an array of other investment types—each with its inherent pluses and minuses. Some of them are new ideas (new technology company stocks; new forms of commercial exchange)—but real estate is definitely not one of those. It may not be innovative, but being a landlord has always been one of the leading sources of passive income.

What is exciting about rental property is why it has always been recognized as a sound investment. When the income from a Lewiston rental property is able to pay for its own underlying mortgage, it self-propels its growing equity. The rental property’s investment value grows as the loan is paid down month by month, year after year. Added to that is any appreciation in its market value.

And with the best Lewiston rental property scenario, when rental income exceeds mortgage and other expenses, it will even throw off an extra income stream. Needless to say, choosing the right rental property in Niagara Falls is worth the effort! Much of that effort involves making a serious effort to map out and project values, income and expense:

  • Neighborhood: Consider how the overall desirability of the neighborhood is likely to affect its appeal to tenants. Are there attractive amenities like parks, shopping and entertainment venues? What do the local classified ads reveal — is the area’s vacancy rate high or low? How do rental prices compare with adjacent neighborhoods?
  • Project Ancillary Expenses: Determine the historical property tax rates, and what future rate changes are being proposed. Likewise, investigate insurance costs and roll both expenses into your total monthly expense projections. You want to be sure that they are low enough that you can still make a profit from the rental.
  • Local Dish: Expert advice from Investopedia is for prospective landlords to speak with renters as well as homeowners in the neighborhood. It’s a good point: “Renters will be far more honest about the negative aspects of the area because they have no investment in it.”
  • Schools: Rental homes in Lewiston featuring two or more bedrooms will attract families—and that means they will likely have children in school. If a school is nearby the home, it’s likely to be that much more popular with family tenants.
  • Crime: Crime-prone neighborhoods can have higher turnover and longer vacancy rates, so a bargain purchase price may be less of a bargain than you’d hope.
  • Commute: Is the property a long commute from the commercial center of town, or a quick drive? Is there public transportation? Many prospective tenants begin their housing search with their workplace as the center point. Renters will consider this before signing a lease—and you should before signing your offer!

If you are thinking of looking at rental property in Lewiston this summer, they’re definitely out there. Call us today to discuss some of the many opportunities!

Lewiston Rental Property Gains Make Selling Tempting

It’s one of the skills a successful Lewiston rental property investor needs to cultivate: if or when to sell. With property prices on the rise, some Lewiston landlords may in fact be asking themselves whether now is the time to cash in. Especially for most everyone whose rental property investment was made during the last few years, it’s already been a profitable gambit. According to the Case Schiller Index, by last year’s close, property prices across the nation had risen at the fastest rate in the previous nine years.

But if—and then when—to sell a Lewiston rental property can be a tough call. As a relatively illiquid investment, it takes a great deal more commitment than the decision to sell a stock or cash in a bond. But sometimes there are circumstances that can make the decision a little easier. For instance:

-Cash flow

One clear reason why you might choose to sell is if the rental property is losing money. The rental may have been vacant for too long, or the rent level may not have been sufficient to cover expenses. In many cases, other real estate investors will be willing to lose money in the short term on a property they believe will appreciate in the future. It’s also possible that a full-time rental property professional may be able to tap economies of scale that are not possible for every individual investor.

-Greener pastures

Your Lewiston rental property may be doing fine—making money and showing substantial value growth—but now an unusually promising alternative investment has appeared. With the strong spring market, it may make sense to sell now to reinvest the profits elsewhere.

-Taxes

Everyone’s tax situation is different, and the tax environment is subject to change. Even if that weren’t the case, there are some years when personal finances mean that a sale would be a much better idea than others. As with any substantial financial decision, your accountant or other financial adviser will have the relevant input.

-“Landlorditis”

Being a landlord is not for everyone. Sometimes a professional property manager can alleviate nearly all the stress for an investor who doesn’t relish the vocation, but even then, there can be other chores: bookkeeping, manager management, a leak-through of tenant personality issues…that prompt a landlord to decide he or she would rather direct energy elsewhere. Opting for more passive forms of investment is always a possibility.

Lewiston has already benefited from some of the fruits of the national real estate recovery – but that alone doesn’t answer whether this spring is an opportune time for you to consider selling your Lewiston rental property. Call us today for a comprehensive property evaluation—the key piece of information that will help you decide!