Are you thinking of buying an investment property in Boise, Id?
The Boise real estate market continues to grow due to the great quality of life it offers its residents. Taxes are also lower compared to many other areas too while the rate of job growth is expected to reach more than 20%.
So, many more people are interested to live here and look for job opportunities in Boise. This is a good sign for property investors. Plenty of people have grown wealthy investing in real estate. But if you’re a new investor, you want to make fewer mistakes so it’s essential to learn tips from insiders.
In this article, we here at Ridgewood Property Management will go into the basics of buying an investment property in Boise. Follow these tips to make the most of your rental property purchase.
What Is the Boise Real Estate Market Like?
Boise's real estate market has withstood the economic damage of the pandemic as a lot of people chose to move here for its affordable cost of living, job opportunities, and spacious neighborhoods. Local home values have shown higher appreciation rates, and it’s forecast to continue.
Property investors can take advantage of this trend and focus on adding long-term rentals in Boise to their portfolios. With the population growth, there is now a low housing inventory, meaning the rental market demand will still remain strong.
Top Tips for Real Estate Investments in Boise
Start Small
For your first Boise investment, don’t feel pressured to go big right away. Start with a condo studio or an apartment unit. Buying a mansion or apartment building straight away can be stressful since you may be only starting to learn how to manage a property.
Set a Budget
As a serious investor, you need to have an idea of the cost of the real estate you plan to purchase. Boise has a lot of potential properties you can convert into rentals. But it’s crucial to be aware of the price range you’ll be comfortable working with. It also helps narrow down your choices.
As an investor, you must have a sizable down payment ready. Remember to include associated taxes and HOA fees in your budget.
Pick High-Rent Neighborhoods
When scouting for the perfect Boise investment property, it’s important to be objective. Look at how the rentals are doing in that particular neighborhood and assess if the rental market is healthy in that area.
It’s best to analyze what a neighborhood in the Boise rental market offers to its residents. List down the conveniences and research where new developments are located. A neighborhood might appear to be a sleepy area, but newer infrastructure might create strong rental demand.
Look at property values and level of appreciation. Avoid making spur-of-the-moment decisions and basing your choice on features and amenities that look good to you. Think about your target market, and whether the property will be a place they’re likely to stay in for a long time.
Avoid Fixer-Uppers
As a new investor evaluating real estate in Boise, it might appear that fixer-upper properties are cheaper. But in the long run, the amount of work you need to put in will end up costing a lot more.
Your time and effort can also be quickly eaten up by all the repairs you have to attend to. The best thing is to look for a property where you only need to perform slight changes, such as making it more attractive.
Hire A Property Management Company
If you’re not a landlord, you may fail to identify how much work it takes to operate a successful rental in Boise. Especially when handling more than a single unit as you’re in charge of keeping it habitable and resolving emergencies.
The good news for real estate investors, they can outsource the property management operations to a trusted property manager in Boise, like ourselves at Ridgewood Property Management.
As an investor, you can focus on chasing after real estate investments while you let a professional team efficiently run your property.
In a Nutshell: Real Estate Investing Tips in Boise
When deciding to invest in Boise, you first need to start small to avoid being overwhelmed and give yourself a lot of chances to learn. Next, you need to prepare a budget and your down payment. Then, make sure to pick a high-rent neighborhood.
Avoid making an emotional purchase and focus on finding the right area. Another tip is to not get swayed by a fixer-upper’s affordable price. Lastly, consider hiring a professional property manager when you want more free time to go after new investment opportunities.
If you need an outstanding property manager for your real estate in Boise, don’t hesitate to contact Ridgewood Property Management!
