By RPM Central Valley
Do you want to get started with buying rental property but aren’t sure which steps you should take first? If so, you’ve come to the right place!
There’s no doubt that real estate continues to be one of the best investments in the United States. This isn’t expected to change any time soon since the economic growth of this country is tied to the real estate market.
In this article we will share with your effective tips you can use to start investing in real estate.
Best Tips for Buying Rental Property
Step One: Do Your Homework Before Buying Rental Property
Doing your homework ahead of time means researching:
- What kind of investment property you want to buy
- How much you can afford to pay
- What kind of neighborhood you want to invest in
- What the average rent is in your area
- What kind of return on investment you hope to make.
Step Two: Make a Plan and Develop Criteria
Once you’ve done your initial homework, you can begin making a plan and setting your criteria. I highly recommend you write down your plan and goals, and refer back to them often. If you are looking to buy a single-family home for between $150,000 and $200,000 – it’s easy to get distracted by the home with the beautiful garden for $250,000. By stating your plan and your criteria, you can hold yourself accountable to your goals.
Step Three: Arrange Financing
One of the most common mistakes made by homebuyers is to start searching before arranging financing. However, this error has caused untold heartache when buyers find they can’t afford the dream home they’ve found. This same principle applies to buying rental properties. Before shopping for your new rental property, be sure to talk with a bank about how much you can afford to buy. There are numerous different paths to real estate financing so be sure to weigh all your financing options before making your choices.
Step Four: Begin Shopping for a Rental Property
Now comes the exciting part! There are a lot of great ways that you can get find a rental property. Begin by looking online at your local MLS to see what’s available. There are several websites you can use to find the listings, such as:
Each of these sites search generally the same MLS listings, which all real estate agents have access to. However, these sites do not contain all the information needed (and sometimes do not even contain all the listings, either.) For this reason, it’s important to get in touch with a local real estate agent that you can trust to get you more information. An agent is generally only paid, by the seller, when you purchase the home – so for a home buyer, using an agent is typically free.
It’s often helpful to find an agent who specializes in working with investors, as they are more keenly aware of what makes a good rental property. Also – be sure to share your criteria (See step two above) for your rental property, and allow your agent to help you find the best properties that meet your qualifications.
Hire A Property Management Company
Once you invest in your first rental property the next thing on your list that you should do is hire a property management company.
Property management is important because we will save you the time, money and hassle of managing your rental property yourself.
More time means that you will be able to focus on growing your portfolio of rental properties without becoming be overburdened by the day-to-day responsibilities of owning rentals.
Contact RPM Central Valley
To learn more about the property management services RPM Central Valley can offer you contact us today by calling (209) 572-2222 or click here to connect with us online.