You may be asking yourself, should I buy a rental investment property? If this is something you’ve thought about, you probably know that real estate can be a very lucrative investment. To be successful as an investor, you have to consider a few things.
Should I Buy a Rental Investment Property? Selecting a Property
First, you need to know what real estate to invest in. There are lots of options when it comes to rental property. You can buy a single family home, a small apartment building, or a condo. You can buy one property or invest in an entire portfolio. Look for homes that will attract a good pool of tenants. You also want to know how much rent you’ll be able to expect from your property before you buy it. When you’re shopping for investment properties, be sure to consider location, property condition, and potential tenants.
Should I Buy a Rental Investment Property? Financial Planning
A successful rental property will generate monthly income, however you’ll need to plan for other expenses. Maintenance and repairs will be needed, even if it’s a brand new home in great condition. You’ll have expenses such as taxes, insurance, and potentially HOA fees. You need to budget for vacancy periods and turnover costs. Make sure you understand your projected income and expenses before you invest.
Should I Buy a Rental Investment Property? Becoming a Landlord
Buying a house is a good investment, especially if you’re planning to rent it out. You’ll have tenants contributing to your mortgage, and your asset will appreciate in value over time. You’ll also be able to take advantage of several good tax deductions. However, you’ll also have to be a landlord. That means you’ll need to advertise for a tenant, screen tenants, come up with a lease, and follow all fair housing laws in the process. You’ll need to take care of maintenance, inspections, and rent collection. You’ll need to hold a security deposit and make sure your tenant is following the terms of your rental agreement.
It’s time consuming, and the laws are constantly changing. If you know you’d like to invest in property but you’re not sure you can manage it on a day-to-day basis, you’ll want to work with a good property manager. Professional management can save you time and money, and help you avoid costly errors.
Should I invest in property? This is an excellent question, and if you’re still wondering – we can tell you more. If you have any questions about investing or California City property management, please be sure to contact us at JBL & Associates.