Getting Started In Real Estate Investing, Using Basic Rental Properties!

Buying a residential property and renting it out is the most common way to get into investing in real estate.  Being the owner/ landlord you’ll be responsible for paying the mortgage, taxes, and the costs of maintaining the property.  

The whole point of investing is to have enough money to pay these costs as well as turning a profit, So You may want to charge more for rent while you have a mortgage, but you should stay patient and only charge enough rent to cover your expenses until the mortgage has been paid.  

Once the mortgage has been paid at that time the majority of the rent becomes your profit.  Your property could have also appreciated in value over the duration of the mortgage, leaving you (the owner) with a more valuable asset.  

You should also be aware of the fact that you could end up with a bad tenant who damages the property or end up without a tenant at all.  You would be left with a negative cash flow, and might have to find another way to cover your mortgage payments.

Be sure that you find the right property.  Pick an area where vacancy rates are low (due to demand) and choose a place that people will want to rent.

When you make the decision to invest in rental property, you should be aware of and prepared for the many responsibilities that come along with being a landlord.

If you are an investor and would like assistance locating or managing a property, feel free to send me a message or give me a call by clicking here...