If you have decided that you would like to get into renting out homes for profit, then you'll want to start out small. This way, you will be able to learn with that first property, before you jump in with both feet and find yourself in over your head. Here are some tips and advice for purchasing that first property you intend to rent out:
Consider the type of property you should buy
If your dreams are to eventually own apartment complexes, you may still want to start out on a smaller level and work up to this. You can purchase a single-family home to rent to a single family or you can purchase a duplex or triplex. Purchasing a duplex or triplex can be a good idea because you can start out with one property that you can rent to two to three different families. This isn't going to be too much for you to handle as a newcomer, but it will give you some great experience.
Know the rental market in the area you are considering buying in
When you buy a home to rent out, you want to make sure there is going to be some profit there and that you aren't going to need to put some of your own money into the mortgage each month. The money you collect in rent should be more than enough to pay the mortgage. If the cost of homes for sale is high in the area and the rentals rent out for low prices, then that area may not be the right one for you to attempt renting a place out in. You want to purchase a property for a good price and then be able to rent it out for an amount that allows it to pay for itself each month, while bringing you some profit. Reach out to real estate agent to find out whether there will be a good market in the area you're looking into.
Consider the condition of the home
When you are going to be renting out a home, you want to know that the roofing, plumbing and electrical are in good condition, so you won't be getting service calls all the time. You also want to have a rental that has certain features that will make it easier to clean up after renters move. For example, high-gloss paint is easier to clean, dark colored carpets will hide stains better and linoleum flooring for the kitchen and bathrooms will be easier and cheaper to replace should the tenant cause damage to them.Share
15 January 2018
About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.