11/14/2019
5 SECRETS You Must Absolutely Know
Before You Buy A Rental Property!
Property Investing is serious business. If you are eager to buy a rental property and become a landlord, there are some things you NEED TO KNOW in order to become successful. Make money in this business starts with BUYING RIGHT! You’re probably getting set to tune me out because you’ve heard that before. I know you’ve heard it before! So why am I telling you such a basic fact again? Look, there’s a reason that every guru worth his salt, pounds it into your head repeatedly. Why? Because it’s the #1 mistake investors make ALL the time!! The purpose of this report is to help arming you with the knowledge you need to ensure you make a solid investment! With that said, let us just right in…
SECRET # 1 -- Location, Location, Location
Tenants want to live in nice neighborhoods with desirable amenities. Meaning they want to be close to hospitals, schools, parks, and work. They want convenient service and goods providers like grocery stores and dry cleaners.
What they don’t want is a run down neighborhood tucked in and/or behind the mechanic shop and right across the street from the liquor store where the boys are constantly hanging out drinking their malt liquor. Yeah I said it. It not only happens but it decreases the chances of you finding renters. Lower income neighborhood incomes are ok, but when you’re looking in a lower income neighborhood look to the one that is stable or improving - obviously avoid neighborhoods that are declining. To be blunt so what if they have a lower purchase price, they also have lower rents that can also be very difficult to collect. In fact when it comes to troublesome tenants I have two words for you. Section 8! Enough said.
Don’t be afraid to buy nicer places for rental properties. By finding neighborhoods that are stable or improving, it will be easier to rent the property for higher rents. People who can afford $1000.00 a month without assistance are more likely to pay the rent on time instead of someone who can only afford to pay $400.00 a month. One of life’s little burps in the latter case and you won’t be getting your rent on time, if at all. If this happens enough times it can lead to the difference between being a landlord or a slumlord because you won’t have enough money set aside for building maintenance and improvements.
TIP: Look for homes by colleges. Especially colleges with a housing shortage! You can make a killing in by renting out each room individually!!! To Be continued.
