People usually learn from their own experience as a landlord. However, it can be a long and tiring exercise that can also set them back by a huge amount of money. There are always things you learn better first-hand but there are also things that can learn from the mistakes of others. Here are top 5 things you should know before buying your first rental income property.
Are you paying a higher price?
If you ask investors, they would confirm the fact that they probably paid much higher than they should have for their first rental properties. Most investors do not carry out a detailed study about prices of various properties in their housing markets. They pay a higher price for a property in a decent condition and in a decent location as they are happy to find such a property. The fact is that there is a sea of information on internet today to save money on your first purchase as an investor. You can save lot of money by not rushing into a decision and by comparing various options available to you.
You can do better with some help
You are bubbling with energy and feeling confident about your abilities. You think you can perform all tasks on your own without taking help form others. However, it is not possible for a man to keep books, carry out repairs, attend to problems of tenants, and maintain the lawn in the property. You can do much better if you hire people to perform different tasks and focus upon what is more important for you as an investor. Having a team saves you time and effort that can be utilized in growing your business. Trying to do unimportant tasks costs you money as you miss out on business opportunities.
Treat it purely as a business
Most investors focus upon becoming a good landlord and managing their relations with tenants rather than focusing upon their business. This is a big mistake as you are not merely a landlord but also a businessman. If you spend your time wisely and study more about rental income properties, you can easily buy several of them with the title of landlord automatically bestowed upon you. Avoid this mistake of devoting more time to the duties of a landlord and you can easily become a highly successful real estate investor.
Buy more properties as quickly as possible
Prices of properties in all housing market are appreciating at a brisk pace. If you purchase a property today and remain content with it, it will become very hard for you to even think of buying more properties after a gap of 5 years. Properties that appear to be cheap now will become expensive in a few years’ time. There is no time to think and get a feel of being a landlord if your aim is to become a highly successful real estate investor. If you spend time learning the tricks of being a landlord, you will miss the train as properties will become out of bounds in just a few years. Buying and waiting for appreciation is better than waiting and then buying.
Conclusion
The time to get into real estate investing is now. Waiting for a better time and opportunity will only make you miss the bus. Everything else will fall in place if you are determined to learn and act quickly.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
