After years of trying unsuccessfully to list my home on my own, I finally realized that I needed some serious help. I began looking for a great real estate agent who could help me out, and after interviewing a few professionals I found someone that was really in tune with what I needed. They sat down with me to talk about my needs and worked hard to help me to identify different homes that could work for my family. I wanted to make a blog all about selecting the perfect agent to work with during your house hunt. Check out this blog for great tips on choosing agents.
Investing in real estate is a good way to secure your future and build on your retirement. But buying a home to rent out can necessitate you to do a bit of research before you choose a property to buy. Here are some tips to help you buy a home that you can rent out to tenants.
Consider Buying a Duplex
If you are in the market for a home for yourself and you wouldn't mind moving in next door to your renters, you can consider buying a duplex property. You can find some single-family homes that have been converted to a duplex with the addition of a basement or upstairs apartment, or you can look for a traditional duplex.
Being a landlord to your tenant living next door makes it easy to handle any maintenance issues, showing the apartment, collecting rent, or dealing with problems with your renter. You will always know what is going on at your unit next door and your tenant may be less likely to cause problems knowing you live right next door.
Look at Property Cash Flow
Before buying a property you will want to crunch some numbers to make sure the rental property is not going to take money out of your own pocket. You don't want a rental property where you will have to pay for some of the mortgage out of your own personal income, for example.
A good rental property should collect enough rent each month to cover the property's financing costs, property tax, home owner's insurance, repairs, and other expenses you will need to pay for to rent out the property. Determine what the market rental rate is for the area where the home is located to calculate a good estimate of what you can charge in rent for a property you are considering buying. Then, subtract the property's estimated expenses to make sure you have some cash left over each month.
Use Professional Expertise
When you are buying a rental home, it is considered an investment, so you want to make sure you make a right investment decision. To help you do this it can be helpful to hire an investment consultant or a realtor who works with investors who can help you search for and analyze properties.
You can find an investment consultant at a local investment brokerage, at an investment club, or seek out services like Springfield Realty Group of Keller Williams that have experience working with investors. A realtor who is an investor themselves can also give you some good pointers.