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information on investing in rental property


Questions to Ask Yourself About Entering this field

Yes, I want to invest in rental property. Now what?

How do I locate good rental properties for investing?

I have my first rental property! Uh, now what?

How do I find and screen tenants?

Rental Property. Should I manage it myself?

Tried it and I HATE it. How do I hire a professional property manager?



Have you started to think that you may want to buy some real estate to rent out? Or perhaps you are thinking I want to buy, but should I live in it or rent it out - I could then in a few years buy a house for myself. Or buy something 'small' - live in it a few years and then rent it out and buy a larger home for myself:. Good questions and tough decisions. You really have to evaluate carefully before you make that final decision. Remember, also, you could buy a house that has an apartment - thus you could live in part and rent out part.
This could be the best avenue for you to pursue. Financing may be easier, because it is owner occupied. It gives you some experience as a landlord - which can help with your decision of do I want to buy /own investment real estate? (Don't forget though - you can always hire a manager/management company).


Why are you thinking of buying investment residential real estate? What are your goals?
Now you really have to get serious. Are you looking for a quick profit? Perhaps you need tax write-offs.
Do you want positive or negative cash flow at the beginning? Or are you planning for your retirement (long term investment)? The list goes on - "What are your goals?" You may at this time need talk to an accountant, CPA. Etc. Depending on your situation - you may have to go more in one direction than another (for the present time). As you are making your decisions - buy for personal use - buy to rent out - live in/rent out part - always be sure you don't financially overextend yourself. And there is no guarantee that the rental income (which will help pay the mortgage) will be there and on time each and every month. If the tenant doesn't pay - moves out and you are a few months without this income - how will this affect you financially? What if you are faced with a major repair? These are a few things you need to consider before buying. And, of course, have you decided if you want to try your hand at being a landlord - can you afford to hire someone - etc. etc.