Need tips for saving money when buying investment property in the Wilmington area?
Investment property is one of the most effective ways to build wealth. Unlike other ventures, it doesn’t require special schooling or inherent talent—anyone can get started. However, successful investors know the strategies to maximize savings and avoid unnecessary costs.
If you’re looking to make smart investment decisions, here are seven tips to help you save money when buying an investment property in Wilmington, NC.
1. Know Your Numbers
To avoid overpaying, experienced investors use key financial rules:
- The 70% Rule: Never pay more than 70% of a property’s after-repair value (ARV). If the cost exceeds this threshold, it’s wise to move on to another opportunity.
- The 1% Rule: Aim to charge at least 1% of the home’s purchase price in monthly rent. If the property doesn’t meet this criterion, it may not be as lucrative as expected.
Understanding these metrics ensures you make financially sound investments when purchasing houses to buy in Wilmington.
2. Secure Tenants Before Closing
Vacancies are costly. Besides lost rental income, you’ll spend money on advertising, tenant screenings, and showing the property. If possible, buy a property with tenants already in place. This guarantees immediate cash flow and minimizes downtime between renters. We buy homes that already have tenants to provide instant income for investors.
3. Avoid Over-Improving the Property
Your investment property isn’t your personal home—so don’t splurge on unnecessary upgrades. While it should be clean and presentable, excessive renovations cut into your profits. Focus on cost-effective improvements that boost value and attract tenants without breaking the bank. Buy houses as is for cash to avoid unnecessary renovation costs.
4. Consider Owner-Occupied Investing
First-time investors can take advantage of FHA loans, which require a smaller down payment, by purchasing a multi-unit property and living in one of the units. This strategy helps:
- Reduce mortgage costs through rental income.
- Simplify property management.
- Establish equity with minimal upfront investment.
Keep in mind that living on-site means you’ll have direct interactions with tenants, so choose occupants carefully. This is a great way to sell your home fast for cash when you’re ready to move on.
5. Negotiate Closing Costs
Closing costs can add up, but many sellers are willing to cover them for a quick and hassle-free sale. Don’t hesitate to ask the seller to handle these expenses—it’s a common negotiation tactic that can save you thousands. We buy houses Wilmington and negotiate deals that benefit both buyers and sellers.
6. Buy Off-Market Properties
Working with a professional buyer and seller, such as Jonathan Swanson, Broker @ RE/MAX Essential, can help you find high-quality properties at below-market prices. We specialize in sourcing off-market deals, ensuring you get the best value without the added competition and markup from traditional listings.
By purchasing directly, you avoid additional fees and unnecessary red tape, allowing you to invest more efficiently in Wilmington NC realty.
7. Partner with the Right People
A trusted investment partner can expand your buying power and unlock opportunities that may not be accessible on your own. When selecting a partner, look for someone with complementary skills:
- If you excel at negotiations, team up with someone skilled in data analysis and financial planning.
- A balanced partnership reduces risk and enhances efficiency.
However, be mindful—partners who are too similar may clash, leading to conflicts that can hinder progress. Sell my house Wilmington fast by leveraging strong partnerships.
Ready to Save on Your Next Investment Property?
At Jonathan Swanson, Broker @ RE/MAX Essential, we specialize in helping investors secure high-value properties at unbeatable prices in Wilmington, NC, and surrounding areas.
Call us today at (910) 538-7737 to learn more about our exclusive investment opportunities!
