Investing in real estate is one of the surest ways to increase your income, but you have to buy wisely. The market goes up and down, but always turns around eventually. If you've decided to purchase income property in Oak Park, with plans for going into the rental business, you need to do your homework, start small, and heed the advice of real estate pros.
You need to stick with residential properties at the beginning. Buying commercial properties can be too complicated and time consuming for newcomers to investing. If you are considering buying a house that is currently rented, you need to know what kind of renter you'll be dealing with. The seller can give you a lot of information as to the stability of the tenant and whether he has a history of excessive demands.
Hiring a property management company will save you time. If you have a full time job and a busy family, you may not have the time necessary to keep up with rental properties. In this case, you should considering hiring professionals to do the job for you. It will be necessary to do some research to find someone reliable and charging affordable rates, but it will be worth it if it frees you up. Hiring a manager will also be helpful if you are new to the rental business.
If possible you should purchase single family rentals in close proximity to apartment buildings. You will have potential renters walking and driving by your house all the time without having to spend a dime on advertising. Most renters prefer houses to apartments when they have a choice. They are usually willing to spend more on the rent if they can get a single family home.
Along the same lines, you should try to find rental properties near amenities. If a community college or university is located in your town, you need to look for real estate in its vicinity. Houses that are close to bus lines will attract more renters.
Take advantage of the experience of existing landlords. If there is a landlord's association in your community you should join it. These are people with invaluable experience. Most are happy to give newcomers some advice and offer suggestions to avoid pitfalls. They will know the best plumbers, electricians, and landscapers as well.
Do not borrow any more money than you have to. Put down as big a down payment, if you're getting a loan, as possible. When you only make a minimum down payment, most of your profits are going to go to making loan payments. What you need is positive cash flow in order to make money. A positive return on your investment will help tide you over if the market goes down.
Consider real estate that is in ready to rent condition for your first investments. Unless you have renovated properties before, you will be better off looking at houses that are ready to move into, or already have tenants. This is the best way to see a quick return on your initial investment.
You need to stick with residential properties at the beginning. Buying commercial properties can be too complicated and time consuming for newcomers to investing. If you are considering buying a house that is currently rented, you need to know what kind of renter you'll be dealing with. The seller can give you a lot of information as to the stability of the tenant and whether he has a history of excessive demands.
Hiring a property management company will save you time. If you have a full time job and a busy family, you may not have the time necessary to keep up with rental properties. In this case, you should considering hiring professionals to do the job for you. It will be necessary to do some research to find someone reliable and charging affordable rates, but it will be worth it if it frees you up. Hiring a manager will also be helpful if you are new to the rental business.
If possible you should purchase single family rentals in close proximity to apartment buildings. You will have potential renters walking and driving by your house all the time without having to spend a dime on advertising. Most renters prefer houses to apartments when they have a choice. They are usually willing to spend more on the rent if they can get a single family home.
Along the same lines, you should try to find rental properties near amenities. If a community college or university is located in your town, you need to look for real estate in its vicinity. Houses that are close to bus lines will attract more renters.
Take advantage of the experience of existing landlords. If there is a landlord's association in your community you should join it. These are people with invaluable experience. Most are happy to give newcomers some advice and offer suggestions to avoid pitfalls. They will know the best plumbers, electricians, and landscapers as well.
Do not borrow any more money than you have to. Put down as big a down payment, if you're getting a loan, as possible. When you only make a minimum down payment, most of your profits are going to go to making loan payments. What you need is positive cash flow in order to make money. A positive return on your investment will help tide you over if the market goes down.
Consider real estate that is in ready to rent condition for your first investments. Unless you have renovated properties before, you will be better off looking at houses that are ready to move into, or already have tenants. This is the best way to see a quick return on your initial investment.
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Get a details list of the things to keep in mind when buying property and more information about income property in Oak Park at http://www.b2binvestmentproperties.com/properties now.
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