Buying Rental Property Part 1.
Thinking about buying rental property? I’ve found that most people look to real estate investing as something to do “in the future, when we aren’t poor” or “a nice dream but not really practical.”
In actually, mortgage rates have been low enough in recent years that almost anyone could start looking towards real estate investing. Lower mortgage rates, and higher rental rates typically signal a good time to buy! I have found a couple helpful tips when you are considering buying rental property.
- Find a trusted agent. Not all real estate agents are created equal! Just like in any other field, Realtors often focus on different fields of real estate. You want to make sure and work with an experienced Investment Realtor. Starting off with an expert will help you learn more about buying rental property and you can avoid common mistakes that will cost you more money. An investment Realtor can also connect you with a reputed property manager and help you find quality renters. Trust me, don’t skip this step! Feel free to ask me any questions as well, I have done tons of investment deals and come highly recommended. You can email me here.
- Expect the unexpected. When looking into buying rental property, you can’t be prepared enough for the unexpected. Repairs, problems, and emergencies never happen on weekdays! Most issues that come up will be resolved by your property manager (as long as you hire one) but if your self managing, be prepared for a few inconvenient problems!
- Finding good tenants is the secret to property management success. It can’t be stated enough! If you have a high quality family in your home, your real estate investment will be a dream! Your Realtor, and the local property managers will be able to help you find a great tenant. Just avoid any potential problem tenants, they are more trouble then their worth!
- Being a Landlord is not for the faint of heart. I’m going to be really honest here. Real Estate investment and property management are not for people scared of bad hours or risk. It takes a lot of gumption to manage your rental home, however the profit potential and property value increases make it worth it! I personally have yet to lose money on a property deal, and this rings true for my clients as well.
In following weeks we will add to this series, since knowledge is power. While your thinking of investing continue to do your research, and when you’re ready to take the next step give me a call!