Investing in Rental Properties for Beginners
You punch a clock 5 days a week, same routine day in and day out. One day you see an ad for a rental property, the price is right, you could swing it and you fancy yourself a good, honest decent landlord type. Besides, it’s instant steady income and with the current downturn in the market this would bring stability for you and your family. Below is some advice for Investing in Rental Properties for Beginners.
First things first; do you own your current residence? If you do then you are one step ahead in understanding the ups and downs of property ownership as you are responsible for maintenance, upgrades, repairs, taxes, utilities, insurance and mortgage payments.
You also try to do most of the work yourself and have the luxury of an open time line for completion of projects. A rental property on the other hand is far more demanding and can have more than one pressing issue at a time.
If you are not a property owner and rent or lease, you also have an advantage. You have experienced first hand what it is like to have a landlord or property manager and this can help you form a mental list of the good, the bad and “not on my worst day would I ever do that” knowledge.
Either way the decision to invest is a great step in securing your future, especially, with the market downturn and properties selling at record lows. Whether you want to supplement your income or start to build your dream, it’s a buyers market and we can help you reach your goal.
Please read the rest of the articles in this series, take notes, and contact us with any queries you might have.
While any investment can be a risk rental property can be relatively safe if you follow a few simple guide lines. The most important aspect is of course financial. First, consider the turn around time you are looking for, specifically, short term vs. long term.
Right now it’s a buyers market. The down turn in the markets have created a plethora of distressed sales, repossessions, and quick sales, therefore one might be tempted to look for a short term investment, say five years. This would mean investing in a property that is in good shape, has a solid occupancy history and will need only minimum maintenance. The advantage here is making a quick profit, the disadvantage not knowing what the market will yield in five years