Diversifying Your Real Estate Portfolio with Champaign-Urbana Investment Property

Every investor knows that diversifying a portfolio is a smart way to protect its assets and allow its value to grow. This includes your real estate portfolio.

When you’re adding properties to your existing real estate investments, make sure you’re choosing different types of homes in various neighborhoods. This will limit your risk and provide new opportunities you may not have considered previously.

It’s also important to surround yourself with professionals when you want to diversify and grow your portfolio of rental properties. A good Urbana-Champaign property management company can help you identify opportunities and make smart decisions.

Champaign-Urbana Rental Homes: Single-Family and Multi-Family

Single-family homes are popular investments, and we work with some owners who have only single-family homes in their portfolio. With a single-family investment, you will always have a large pool of prospective tenants, and you’ll be able to charge more money, especially when the property is well-maintained and in a great neighborhood. These investments also appreciate quickly, and the value of your asset will increase steadily year after year.

To diversify your portfolio, consider investing multi-family properties as well. They will provide you with additional rental income and less vacancy risk. Instead of collecting one rental payment every month, you’ll collect two or three or four. If one unit is vacant, you still have income from the other units.

Lower risk and higher cash flow are excellent reason to invest in multi-family homes as well as single-family homes. The additional good news is this – both types of properties are plentiful in the Champaign-Urbana market, which means you won’t have trouble finding either type of investment.

Diversify and Leverage Urbana-Champaign Investment Properties

Another great way to diversify your real estate portfolio is by experimenting with your financing options. A 1031 Exchange, for example, can help you “trade up” to higher performing assets while deferring your tax liability to a future date.

Some investors pay in cash and others take a traditional mortgage. You might be able to get a better deal if you try owner financing. You usually won’t need a large down payment, and if you structure the deal so that you’re primarily or completely paying the principal, you’ll find your cash flow and your ROI can improve quickly.

Look for New Real Estate Projects

The market is always changing, and if you are staying up to date and networking with local real estate and property management portfolios, you’ll have an easier time finding the right opportunities. Plenty of new construction continues throughout the area, and the economy continues to offer a stable environment for investors. Even with the pandemic, we’re seeing home sales continue to deliver strong numbers, and that tells us it’s a good time to consider acquiring those investments that will help you diversify your portfolio.

Work with Champaign-Urbana Property Managers

Work with Champaign-Urbana Property Managers Ramshaw Real Estate can help. We have the local knowledge and the industry expertise to help you find the right investment opportunities and take the necessary steps to acquire smart rental homes. We’ll help you determine how much rent you’re likely to earn and we’ll inspect the property thoroughly, so you know what you’ll have to spend in order to get it ready for the rental market.

We provide rental forecasts and market analyses all the time. Let us know what your investment goals are, and we’ll put together a plan that allows you to diversify and grow your real estate investment portfolio.

For more helpful information, contact our team at Ramshaw Real Estate.