How and Why Own Rental Property
Opening Statement – “Who likes money? Who likes making money every month without have to actually go to a job? Who would like to know one way to start building wealth?
According to Fortune 500 magazine Real Estate is the quickest way to wealth build. Common practice
* Find a RE expert that knows and understands the demands of an investment property vs. owner occupied property. 1. Renter friendly – at least 2 bdrm, should be 3 to 4, 2 baths 2. Priced competitively – foreclosure,
3. Well maintained - paint, clean, good appliances, etc
* Decide what type of property
1. Single residential -
2. Multifamily – Duplex or apartment (you could live on site) . Single-family houses are generally less expensive than apartment complexes because of pure size, but generate less income. Apartments, on the other hand, can require more upkeep 3. Commercial
* Consider hiring a property manager.
1. Property owners become emotionally attached
2. Property mgrs is a business and are know that it is just a building 3. Decide if you want to do maintenance yourself. If you have the skills, equipment and temperament to deal with upset tenants and a backed up toilet at 2 a.m 4. Cost about 10% of monthly income, but could net much more dollars due to contacts and knowledge. According
* Decide what your goal is.
1. Steady monthly income
2. Flip – lower price so u have more instant equity or a flip
* Get preapproved for a mortgage unless you have cash. RE expert should know and trust a good investment lender. Financing investment property is different from residential property in that it requires a much larger down payment and has higher interest rates than owner occupied.
* Start looking
Choose property where people want to live, close to shops, parks and decent schools, and in a well-kept neighborhood. There's...