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The following is a guest post. Enjoy!
- How much money will it take to get the home in move-in condition for tenants?
- Should you be looking into tax benefits?
- Does the property have the potential to provide you with a steady income?
Although the process of becoming a landlord (or lady) is somewhat tedious and fraught with unnerving legal jargon, buying a rental property is essentially the same as purchasing any other house. The best thing to do is picture yourself living there. Would you pay as much as you’re hoping to ask? Listed below are several considerations to be sure to remember if you’re looking at purchasing a property to rent out as an investment.
1. Location, location, location –
2. Jobs –
3. The property –
4. Safety first –
5. Think small –
How about you all? Have you ever invested in a rental property? If so, what steps did you take to make sure it was desirable/would be rented out regularly?
If you haven’t yet invested in a rental property, what has made you resist doing so? Was it monetary, or a desire to avoid the burden of being a landlord?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- Very interesting post! I like articles pertaining to becoming a landlord, as I could definitely see myself getting involved in renting out properties after finishing my graduate school program and obtaining a regular job with a more substantial salary.
- However, the approach I would probably take is to first buy a house/condo to live in myself for several years while I made progress paying down the mortgage. Then, when I was ready to upgrade to a larger home, I would keep ownership in the old place, move in to the new house with my family (the two houses can be in the same city/location – that’s no problem), and then start renting out the previous house to tenants.
- @ My principle concern with buying real estate just to rent it out –
- With the way the real estate market has been for the past several years in the US, the main worry I would have with owning a rental property is not whether I could actually do my homework properly to determine whether a place is desirable to tenants or not, but rather there is enough demand for the place to rent out in the first place.
- For example, I currently live in a condo complex that maybe has several hundred units. However, it feels like about half of the units are empty currently. Of course, this could be related to them all being “for sale” and not an accurate reflection on the strength or weakness of the rental market. However, it still definitely prompts the question.
- As such, before becoming a landlord, I would probably want to get a very concrete sense of the rental market overall in the town in which I lived.
- Currently, I’m not sure of any good online resources to do this – do any of you all know of any?
***Photo courtesy of http://farm2.static.flickr.com/1406/1455052642_43acd1ab29.jpg