Steps To Successful Rental Property Purchases

Dated: 02/01/2018

Views: 408

Purchasing rental properties is a very good, low risk, investment and a perfect way to create residual income.  Here are 5 great tips to utilize when deciding which properties are just right for you.


1 - DETERMINE AREA RENTAL RATES

        Conduct your own research or higher a real estate agent to determine the rental rates in the area.  This will help you in determine how        

        much you want to spend on the home and/or repairs.


2 - UNDERSTAND ROI (RETURN ON INVESTMENT)

        ROI is a calculation of how much time it will take you to earn your initial investment funds.  $35,000 property rents for $850/mo.

        $850 x 12 months = $10,200 annual rental income

        $10,200 - 20% (subtraction from income for taxes/insurance and repairs) = $1530

        $10,200 - 2,040 = $8160

        $35,000/8,160 = 4.3 (In 4yrs 3 mos you will have made your entire $35,000 initial investment back)


3 - DO YOU NEED PROPERTY MANAGEMENT

        Are you available or do you have repair people available to handle repair issues?  If not, you may want to consider hiring a property 

        management company to assist.  Management generally charge 7 - 10% monthly to manage the property.  Be sure to factor that in to your 

        expenses when determining your ROI.


4 - CONSIDER A PROPERTY WITH AN EXISTING TENANT

        Purchasing an existing rental property will give you instant rental income starting the day you close.  Be sure to request rental history and 

        speak to the existing tenant regarding their desire to remain in the property after sale.


5 - GET AN INSPECTION

        Inspecting the property will give you a good idea of the types of repairs and the cost of making those repairs.  Try to avoid looking at sales  

        price as the only factor for purchasing a rental property.

Ready to start buying?  Have more question?  Please call/text/email at your convenience or click below for a list of rental properties for sale.

                                                        http://kira.columbia.unitedrealestatesc.com/index.php?showagent=1#rslt

KIRA PERSON

UNITED REAL ESTATE

CELL 803.607.2400

EMAIL: [email protected]

WEBSITE: http://kira.columbia.unitedrealestatesc.com/index.php

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