Removing Roadblocks to Home Ownership – Your First Rental Property

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Filed under: Investment Property

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One of the most reliable ways to generate long term wealth is through the investment in real estate. But you need to know what you are doing if you would like to invest in rental properties. Today I talked to Gerren Parker, and we explained a few things that you need to know.

Getting Ready to Buy a Rental Property?

As you are evaluating your options, it’s always best to talk to your property manager to find out what will be needed for the property you want to buy. You need to know the numbers: PITI, interest, outlay, HOA, landscaping, and anything else that will impact your overhead costs.

All of these factors will help with the considerations of what your profits will look like on the property. Ultimately, you will be able to predict your return on investment. A property manager can help you determine the rent for the market area. You can discuss whether it is a good investment for the long run. For example, you need to consider both cash flow and the equity benefits that are available.

Returns on a Real Estate Investment

One of the mistakes that new real estate investors make is that they only think about the mortgage payment. But you need to be real about the overall costs so that you can decide if it is a good investment for your needs.

What needs to be put into the property to get it to be the most rentable that it can be? What liabilities will you be taking on as the result of being a landlord? Hiring a property management company can help you avoid some of these pitfalls, including fair housing laws and other legal aspects that you might not have considered without professional support.

Questions about Buying a Rental Property?

Real estate has created an enormous amount of wealth for people across the country, but you need to make sure that it is done right. If you are interested in your opportunities, then you can talk to us for more information about buying and renting in this area. Call any time.

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