Getting into rental real estate can be a tough decision. However, if you are looking for a way to add passive income to your income each month, then rental real estate may be for you if you are prepared for it.
Here are tips to find a home to rent to others:
What will the location be?
Are you looking for a home right next door to you? I have heard of people buying multiple homes in a row to make things easier on them. They can then collect rent and check up on their rentals very easily, as everything is closer together.
Or, do you not care about how close the rental home is to you? I know of someone who rented a home out even though they lived around 45 miles away. They had to hire a property management company because they knew that they wouldn’t have time to fix things if something were to go wrong since they lived kind of far away.
Look for the best rental home for potential tenants, not yourself.
Many people make this mistake. Just because you like something, it does not mean that renters will. You need to figure out what renters in your area want and how you can meet their needs.
Does the neighborhood allow renters?
Some neighborhoods do not allow renters at all, and there is just no fighting that. Before you buy a home to rent out, you should know the rules and laws of where you are buying. If the neighborhood that you buy in does allow for renters, then you may want to check out cheap landlord insurance from CIA just in case anything does happen from the renters causing damage to the property.
Does the home need a lot of work?
You may find a GREAT deal on a rental home, but what if it needs a lot of work? Usually local government is much more strict on homes that are being rented than homes where the owner will actually be living in. You will probably have an inspector come to make sure that the home is live-able. Do you have enough cash so that the house will pass inspections? Or will it fail immediately?
Are you interested in getting into rental real estate? What tips do you have?