subject: Buying Rental Homes - Expert Gives Advice On Buying Rental Property [print this page] Have you thought about buying rental property? There are lots of reasons that right now is a good time to buy rental property. For one things home prices are at an all time low. I have been in the rental business for over 30 years and I have never seen it quite like this. Let me give you some ideas for things you should look out for when buying rental property.
Consider the location. In the real estate business they say there are three things important to the value of a home: "location, location and location." If you want to make sure that you profit from your real estate deal analyze the location of the property. You can use the Google real estate tool (just search for it on Google) to find the homes that have recently sold nearby. Take a look at their values to see if you are getting a good deal or not.
Take emotions out of the deal, never fall in love with a house. If you have ever been in love you will know it makes you do crazy, illogical things. You don't want that same experience with your rental property purchase. You can like a house, and be fond of a great deal, but never get emotionally attached to an investment property. You need to calculate how much you are willing to pay by looking at recent sales, researching the rental market, and by deducting any repairs that will need to be made. Then don't go a penny over that amount. Always stick to the logical deduction about a house, even when it otherwise looks like a great deal.
There are professionals who inspect homes, hire one of them to take a look at the place for you. If you are not a professional plumber, electrician, carpenter, and architect all rolled into one I suggest you hire the expertise of someone who knows how to spot problems. Many people skip this step and later it proves to have been a mistake when they find out that the home is in need of major repairs that cost them way more than they had originally budgeted for. If you want to lose money like an amateur then don't hire a pro to inspect your home.
Buying rental and investment property can be a tricky road. Follow the steps above to get started moving towards being a professional in the business who makes a nice income. For the last 30 years I have made my income with rental property and helping others to find the right investments. You can do this as well, it just takes a little effort on your part. Nothing in life is free, and this is not a way to become an instant millionaire, but rental property can provide you with a nice recurring income that will take you into your retirement years with ease.
