Real Estate Elevated Review: Why You Should Bundle Your Rental Properties

As a new real estate investor, you want to make sure you’re getting started on the right foot. One real estate blunder could cause you to lose a lot of money, so save yourself the pain and learn from the mistakes of other real estate investors who have gone before you. One of the biggest tips any experienced investor would tell you is to start out by bundling your rental properties in one or two states. This will save you a great deal of time, money, and effort as you learn the ropes and build your capital. Here are four important benefits to bundling your rental properties.

1. Simplify Taxes

Tax returns need to be filed by state, so if you have properties in five or more markets, you’ll also be doing taxes in five or more states. If you’re like the rest of the world, you probably want to make your tax filing process as simple as possible. Avoid the headache and stick to just 2-3 markets so you’re not wanting to pull your hair out during tax season.

2. Save Money on Travel

Good real estate investors take time to check in on their rental properties every now and then. Even if you have a property management company, you’ll need to visit in person occasionally to make sure things are going well. If you have rental properties in the same state, you’ll be able to more efficiently and affordably travel to check in. Bundling rental properties will also save you money on other expenses associated with registering an LLC.

3. Streamline Management

Rental property managers are an excellent way to delegate the day-to-day work of running a rental property. But many rental property management companies are locally owned and operated, meaning you’ll have to work with a handful of different companies if you have properties scattered across the country. Save time and simplify processes by having one or two management companies run properties in the same general area.

4. Learn the Ins and Outs of the Market

Markets are changing all the time, and it can be hard to keep a pulse on the trends if you’re trying to divide your attention between many different properties. Thoroughly learn the ins and outs of one specific market by bundling your properties in the same place. You’ll be a more successful investor once you’ve gotten to know the intimate details of real estate investment in one region.

Get More Tips from Real Estate Elevated

By bundling your rental properties, you’ll be following an important best practice and set yourself up for success in the real estate industry. If you’re looking for even more ways to take your real estate investment career to the next level, Real Estate Elevated can help. We offer free courses all over the country, where new, aspiring, and experienced investors alike come together to learn from the pros. Sign up for one of our courses today in a city near you.