Today I wanted to share with you three tips for investing in rental properties.
You may have played the game of Monopoly and you know that the way to win that game is to have the most amount of properties and cash in the bank. Life can sometimes be a game as well, and we live in the perfect city for investing in rental properties. You might have thought about investing, and I wanted to share three things to consider before you invest.
1. Be selective when you buy. You need to make money when you buy the property. Often investors see a home at a low price and think they’ve found a good deal. However, you need to do your homework and research the area to determine whether it’s a good deal or not. Remember, price is what you pay, value is what you get.
2. Have an exit strategy. While investing in a rental property can be a great way to earn profit, don’t let it become such a large part of your portfolio that losing returns on it can ultimately bring you down with it. Have a one-year plan and then a five-year plan and stick to those plans.
3. Be ready for the unexpected! Things can quickly take an unexpected turn, and you need to be prepared for it. Houses can be a great investment, but are often full of unseen costs that correspond with those investments. So be prepared and able to address those issues when they present themselves.
If you have any questions about this or any other real estate topic, give me a call or shoot me an email. I’d be happy to help!