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 want to start with residential properties. These transactions are almost always less complicated and time consuming than purchasing commercial properties. If you're looking at a house rental that is occupied, you need to discuss the tenant's history with the seller. You want to choose a house with a stable occupant who pays his rent on time and doesn't have a history of constant demands.
You can save a lot of time by hiring a property management company. When you work full time and have a busy family, you might find it hard to manage rental properties on your own. If this is the case, there are companies that specialize in managing them for others. You should do the research necessary to find a reliable company charging fair rates. These managers can be especially helpful when you are just starting out in the real estate investment business.
Buying in the vicinity of apartment buildings is something most experts suggest. Doing this gives you the opportunity to expose your rental house to people who are already looking for properties to rent. Many prefer to live in single family homes, instead of apartments, when they have the opportunity. It may be that you can save money on advertising because there are so many renters in the area riding by your house every day.
You also want to look for rentals that are convenient to amenities. Community college and university students are almost always renters. If you can find good student renters, you might have occupants who stay for several years. Properties convenient to bus routes are always popular with 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 want to start with residential properties. These transactions are almost always less complicated and time consuming than purchasing commercial properties. If you're looking at a house rental that is occupied, you need to discuss the tenant's history with the seller. You want to choose a house with a stable occupant who pays his rent on time and doesn't have a history of constant demands.
You can save a lot of time by hiring a property management company. When you work full time and have a busy family, you might find it hard to manage rental properties on your own. If this is the case, there are companies that specialize in managing them for others. You should do the research necessary to find a reliable company charging fair rates. These managers can be especially helpful when you are just starting out in the real estate investment business.
Buying in the vicinity of apartment buildings is something most experts suggest. Doing this gives you the opportunity to expose your rental house to people who are already looking for properties to rent. Many prefer to live in single family homes, instead of apartments, when they have the opportunity. It may be that you can save money on advertising because there are so many renters in the area riding by your house every day.
You also want to look for rentals that are convenient to amenities. Community college and university students are almost always renters. If you can find good student renters, you might have occupants who stay for several years. Properties convenient to bus routes are always popular with 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.
About the Author:
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.
0 comments:
Post a Comment