There's so much out there from people that have portfolios of 10, 20, 100, 200 properties and are doing this for a career. What about the girl or guy who has the money to do 1 single-family residential, with the hopes of having a few assets in the next 5 years adding to his wealth? I'm looking to skip the fluff marketing and get straight to the good educational material.
I recommend you checkout the following site:
https://www.biggerpockets.com
They also have a great podcast.
Answered 7 years ago
I recommend that you look at your return. Take your Annual rent less taxes, insurance, and maintenance costs. This should be 10% or more of your purchase price. After deducting your annual loan payments (less taxes & insurance), divide this cash flow by the down payment if you borrowed $. You should have a 20% Cash on Cash return. Visit https://www.entrepreneursreport.com/master_real_estate_financials/ for more details and an online calculator.
Answered 6 years ago
Hello! I think I can help you tremendously! I only own a couple rental properties, but specialize in people buying and beginning their first rental properties. Here are a couple questions that you need to know about before buying your rental property! I will make sure you know them inside and out. Do you know about the 1% rule, the differences between single family homes and rental properties? What areas are hot beds for rental property? How to properly analyze and pick which property should be your first property? When is the proper time to renovate a property? How much should you renovate the property? What are renters looking for? Are you going to use a property management company? What is a reasonable amount for them to charge? Now for returns, do you understand CAP rates, Cash on cash return, Leverage ratios, income tax and tax benefits of owning a rental property? These and so much more you need to know before getting into rental property. Lets get your money working for you. You start with one rental property and you can snow ball it into 5-10 within the next decade like many people do. I have excel models that can help you determine the returns you can expect from the homes you are looking at. Also, lets talk about how you are going to finance your property? How much risk are you willing to take on and how much are you wanting to put down on this property? You also need to know about basic landlord law, you wouldn't want to get sued and end up having someone take your house. Please feel free to give me a call and I can go over everything with you. I have about 400k in rental property, which is 3 homes, but I have specialized in giving advice to people looking to get into their first rental.
Answered 6 years ago
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