Falling property prices have made this time one of the best times to buy an investment rental property. But if you don’t know what you’re doing, rental property can become your biggest nightmare. Here are some investment rental property tips that can help you get started and keep you on track.
- Overcome the fear: Many people don’t pull the trigger on rental properties for investment.
- Gain some knowledge – this goes a long way in overcoming fear
- Find out what type of property is the best for you
- It’s all about the location, don’t buy a property in a war zone, who will rent your property?
- Start with something simple like buying single-family homes
- Learn How To Finance Investment Property – There Are Dozens Of Creative Real Estate Investment Ideas To Choose From
- Save money for a down payment – With no down payment, real estate generally has negative cash flow
- Clean up your credit history – a good credit score can significantly lower your monthly payments
- Buying Homes in the Price Range of “Starter Homes”
- Only Buy Homes From Motivated Sellers – Earn Your Money When You Buy
- Hire someone to do a home inspection until you have experience doing your own
- Use a “subject to” clause in any contract you send to a seller
- Don’t upgrade a rental home too much
- Use a rent-to-own strategy to get the best tenants and the best rental income – if you make tenants the potential owners “you can even get them to do some maintenance
- Always check the background of potential tenants
- Follow your lease to the letter. If you give tenants an inch, they’ll take a mile
- Keep accurate records of your income and expenses
These are just a few tips for investing in rental properties. Like any profession, knowledge is power. Take the time to study what successful real estate investors do. Join a real estate investment club and partner with people who are buying rental properties for investment.
