Are you thinking of buying an investment property in
Baton Rouge, LA?
Rental property investments have a lot of potential. They can help you earn a monthly passive income and grow your equity and wealth in the long term. However, before investing in real estate, you must consider many important factors, including finding the right location for such an investment.
As the capital of Louisiana, Baton Rouge is one of the best places to live in the state. This city has all the perks of a major metro area, including world-class universities, affordable housing, and a rich culture, while maintaining its small-town charm.
Plus, the Baton Rouge real estate market offers plenty of investment opportunities for both beginner and experienced investors. The cost of homes in Baton Rouge is way lower compared to other major U.S. metro areas. Despite this, you need to do some research beforehand to make an investment.
If you’re just starting, don’t worry! In this article, we will go over everything you should know when buying an investment property in Baton Rouge. Follow these recommendations to maximize the potential of your rental property purchase.
What Is the Baton Rouge Real Estate Market Like?
The need for rental homes in this area has significantly grown. As the population expands, so do the opportunities for investors to boost their income and diversify their portfolios by investing in this town.
However, it’s important to note that the
housing market in this city is quite competitive.
The good news is that homes in the Baton Rouge metropolitan area are affordable. Plus, there are plenty of investment opportunities and there’s a strong need for rentals at every income level in this area.
5 Tips for Real Estate Investments in Baton Rouge
If you’re ready to start
investing in Baton Rouge but don’t know where to start, we’ve got you covered! Here are some tips to help you get started:
#1: Look for Properties in Your Price Range
There are many investment opportunities available in Baton Rouge. For instance, you’ll have your pick of single-family homes, apartments, and even French Colonial homes.
To narrow down your options, it’s best to set a budget. This will immediately remove a lot of properties that would otherwise clutter your view of the market.
When setting your price range, it’s important to take into account additional costs such as taxes, insurance, and even HOA fees. This way, you won’t have to worry about any surprise costs.
#2. Choose the Right Neighborhood
Baton Rouge is full of wonderful
neighborhoods to invest in. To maximize profit, it’s important to keep an eye out for the areas that have the highest rent payment to purchase price rate.
Some of the best places to live in Baton Rouge are Prairieville, Zachary, and Garden District. These neighborhoods offer many amenities renters are looking for, from great schools to scenic views and plenty of green areas.
But before you start browsing for properties in any of these areas, it’s important to do your research. Take a look at the
current rent prices in your preferred neighborhood to get an idea of your potential earnings.
Additionally, it’s a good idea to investigate whether there are any major developments underway. For instance, new educational facilities, infrastructure, and real estate projects are all indicators of potential future growth that can improve your ROI.
#3. Crunch the Numbers
Buying a rental property in Baton Rouge is a big investment. So, it’s important that you take the time to calculate your potential ROI before signing any purchase agreements.
For instance, you can look at the rent prices of similar properties in the area to see how much passive income you could potentially make.
#4. Boost Your Rental Property’s Appeal
Once you purchase an investment property, you must ensure it’s attractive to prospective renters. The best way to do this is to invest in simple updates and renovations.
For instance, you can:
- Paint it. A new coat of paint can go a long way in making your property look more appealing.
- Invest in new hardware. Investing in new light fixtures, house numbers, and mailboxes can significantly improve the overall look of your property.
- Make necessary repairs. Taking care of repairs will save you a lot of time and money in the long run. Plus, it shows prospective renters that you’re a responsible landlord.
- Upgrade the kitchen. The kitchen is one of the biggest selling points of a rental property. So, make sure that all appliances work properly and consider making small changes, like adding a backsplash or upgrading the cabinets, to make this room more appealing.
- Refresh the
curb appeal. In real estate, first impressions always matter. Making the exterior of your rental more attractive will help you attract more prospective renters.
- Offer amenities renters want. Many renters are willing to pay extra for things such as dishwashers, washer and dryer combos, playgrounds, and even nice patios.
#5: Consider Hiring a Professional Property Management Company
Investing in real estate can be more work than most think. For instance,
managing a rental property comes with many responsibilities, including managing relationships with tenants, conducting inspections, and handling repairs.
If you own more than one unit, all these responsibilities can become too much too quickly. That’s why hiring a property manager is highly recommended.
When you work with a property management company, you can ensure that your rental unit is in prime condition at all times. They’ll take care of maintenance and repairs so that you can have time for more important things.
Baton Rouge Real Estate Investors: Bottom Line
Purchasing an investment property in Baton Rouge can be a great financial decision. Real estate investments can help you earn a stable passive income and grow your equity over time.
However, it’s important to do your research beforehand. You need to determine the price range you’re willing to operate in, choose the right neighborhood, and invest in upgrading your property to ensure your rental business succeeds.
If you want more expert tips for investing in Baton Rouge, contact Sage Property Management today. With over two decades of experience in the real estate industry, we’ve helped countless homeowners and investors reach their goals. And we’re ready to help you too!
