Buying Rental Property? 5 Smart Moves to Get Started

For a first-time investor, making the decision to buy your first rental property can be a little scary (it’s not quite like the popular TV shows about flipping houses hassle-free). With hard work and determination, most rental property investors can earn a substantial amount of real estate wealth over their lifetime. With this guide, find out a few smart moves you should follow to find finance, property and a tenant.

1. Want to Invest In Rental Property? Do Your Research First

Congratulations! You’ve already taken the first step by reading this blog! Do some research before jumping right into looking at properties. Get the inside scoop on the local market in which you’re interested in purchasing rental property: look at demographics, crime rates, schools, parks, as well as local businesses and amenities. After you examine the community, start formulating a financial plan.

2. Explore Financing Options

After you’ve done your research, investigate your financing options; be sure to do this before you look at any homes to save time (and heartache). Note that mortgages available for rental properties will be different from mortgages available for homeowner mortgages. It makes sense to seek advice from an expert to help you make the right decision and guide you through the process. From all cash to 203K loans, there are many options to suit a wide array of budgets.

3. Time to Your Search!

Once you know where you want to look and how you’ll afford it, let the search process begin! But don’t let emotions deter you from your budget. Stick to your plan and consult with a professional real estate agent who will offer great insight into the property market options available. Because once you find the right property (and one that’s at the right price) it’s time to make the offer!

4. Schedule Thorough Inspections

The final check before you buy is to hire an inspector to perform a thorough inspection on the property. This is essential to unveil any defects that could cost you big bucks in the future. Once this is taken care of, you can proceed to your final step.

5. Find a Shiny New Tenant

Once you’re through with all the legal process and you’re the proud owner of a rental property, it’s time to start the process of finding the perfect tenant. Protect your investment by implementing a tenant screening process that includes an application, background and credit checks. Skip this step and you may find yourself in the middle of a horror story with nightmare tenants.

Invest In Your First Rental Property

Take it one step at a time and your dream of becoming a landlord can definitely become a reality. Work with a good Realtor to help guide you through the process of making the move to invest in your first rental property today.