It’s no secret that Lake Charles is on the verge of economic boom! With the Southwest Louisiana industry expansion comes the need for housing and not all workers moving to Lake Charles will want permanent residence or be able to purchase a home. The calls for Lake Charles Rental Properties is on the rise.
Savvy and novice investors are on the hunt for Lake Charles Properties that can be rented. Investors look for ROI (return on investment) and how much profit they can make on top of rent. Many investors choose will purchase a property with a line of credit and/or finance their purchase, so the rental income needs to exceed that note to provide profit. Included in the calculation you must also allow for wear and tear, repairs, insurance and maintenance of the property. Depending on the investor, each will have a different target number and formula.
Many Lake Charles investors are looking for homes to “flip” homes that can be rehabbed and either rented or SOLD for a quick profit.
When searching for a flip investment property, the investor client can overlook cosmetic issues with a home. The investor is going to do some remodeling and updating and will already have a budget in mind when viewing Lake Charles Homes for Sale. So the investor is looking for a home with what I like to call “good bones ” meaning, existing living space and structure.
Given the current low inventory in Lake Charles Real Estate, properties that prove to be a good investment for rental income and/or flip property don’t last long. Everyone has the same idea and more and more investors are jumping into the Real Estate market. Many investors think that Lake Charles foreclosures and HUD homes are good buys because they are cheap but that is not always the case and could be an issue with financing as well. When paying a cheap price you may end up paying the price with structural issues, termites, plumbing and electrical repairs!
When choosing a Lake Charles home for investment, look for what can be rented right away without the expense of making repairs. Good clean interior and condition will be attractive to a renter when viewing.
When you view a property, don’t wait to make a decision because what you see today gone tomorrow! I work with investor clients and Two weeks ago I showed an investor client several properties. By the time the client was ready to make an offer the house was already under contract! Savvy investors know when they see a property whether it will work for them or not and how much rental income they can net.
Do your homework first and be ready to write the offer when a property is available!