Over the last few years, rental prices have been consistently rising around the United States. While 2018 has seen a slow down to the fast growth, the third quarter of 2018 saw a 2.9% rental increase across the US.
Investing in real estate has allowed our family to increase our net worth tremendously. And the amazing part of it is that we are using other people’s money to grow our wealth. In fact, my husband thinks it is the biggest hack there is.
If you are considering investing in rental property, here are five tips to take to heart:
1. Consider the costs.
There are many factors to consider when you’re purchasing an investment property: how quick and/or expensive is the turnaround from purchase to renters moving in. Can you afford the neighborhood and property taxes? Be sure to do your research and look at houses or units for rent in the neighborhoods you want to consider.
2. Be committed to the time it will take.
Managing a property takes time. Either be prepared for the time commitments of finding renters, visiting your property(s), making/overseeing repairs, unexpected disasters (like a flooded basement), or hire a property manager.
3. Look for the right tenants.
Finding tenants who take pride in a rental home as if it was their own are a landlord’s dream. Take the time to do the background and reference checks to make sure your tenant can afford the property and is going to care for your investment.
4. Don’t let repairs take you by surprise.
Furnaces break, pipes burst, refrigerators stop running, carpet wears out. Be prepared for the eventualities by setting up a bank account to deal with the emergencies and maintenance of an investment property.
5. Connect with an expert.
Finding a realtor to help you invest in the best rental property for you matters. Owning investment properties, I can help you navigate the uncertainties and find the best investment for your family.