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4 Tactics for Low-Risk Growth for Pittsburgh Investors

Young Entrepreneur Looking Over Paperwork Before Purchasing PropertyA key element of successfully investing in Pittsburgh single-family rental properties is knowing how to mitigate risk. Although rental properties are an excellent option to achieve this, it’s still advisable to approach your investments with smart risk mitigation strategies in mind. Due to this action, your Pittsburgh investments will remain consistently profitable irrespective of how volatile the economy becomes. By following these four expert tactics, you can ensure low-risk growth year after successful year.

1. Hedge Your Equity

Growing any investment portfolio requires some risk. Yet, one of the perfect ways to help minimize that risk is to maintain a good amount of equity in your assets. Low-risk investing is not always about protecting yourself against losses on a rental property. It also involves hedging against the type of losses that would devastate your entire portfolio. It may be appealing to max out your equity in each property as quickly as possible. But it’s far less risky to give yourself an equity cushion – just in case.

2. Build Up Your Cash Reserves

In the same vein as an equity buffer, confident low-risk growth depends on having healthy cash reserves set aside. The majority of experts suggest building up a cash reserve equal to six months of mortgage payments and other expenses. A cash reserve like this can help you more easily navigate through unexpected repairs, vacancies, or other hardships. When you already have your cash reserves built up, all future funds are then yours to use on new purchases.

3. Streamline Your Systems and Processes

Investing in rental properties is a business, and all businesses need good systems in place to run effectively and efficiently. If you haven’t tried that previously, start keeping track of what you’re spending time on. Particularly, try to note the activities you do that contribute to your growth versus tasks that are just draining away time or resources. For these time-consuming tasks, establish plans to either automate or outsource them. The key to efficiency is to create repeatable processes that will allow you to focus your valuable time on the most profitable aspects of your investing business.

4. Leverage Technological Tools

One of the advantages of being a Pittsburgh rental property investor now is that several useful digital tools can make running your investment business simpler. From creating virtual walkthroughs and showings of your properties to managing property maintenance and repair, almost every task vital to being a successful investor can now be completed online. By using the right technological tools, you can easily make progress, even under the toughest circumstances.

Using these four tactics for low-risk growth will help your investing stay on track over the long term. The most successful investors never allow a bad economy or unexpected losses to keep them from achieving their wealth-building goals. Instead, they use smart planning and solid strategies designed to protect their Pittsburgh investments against any scenario possible that comes their way. The services we provide at Real Property Management Three Rivers can also protect your assets, cut costs, and maximize your income – without intruding on your everyday life. Contact us today to learn more information.

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