2stepz_ahead
New member
What type of property do you want to get started?
While there are tons of property types; we are going to focus on single family. Even within this niche you can get started with a personal property meaning you live in it first and rent it out when you move or you can buy a rental property. This means that it is a rental property from day one.
Do you want to be a local investor or are you willing to buy long distance in the best real estate markets?
Being a local investor allows you to be able to check on your properties easily if there is ever an emergency. It also makes it easier to self-manage or supervise a property manager.
Long distance allows you to invest where the market make the most sense for cashflow; not just your local market (i.e. Kentucky versus New York City). You can live and work in California and invest in the Midwest where your money goes a lot further with higher returns.
Do you want cash flow or cash flow and appreciation?
Some markets such as California, DC, or New York City, see large amounts of appreciation that a landlord can anticipate. Other areas such as small town Texas, Wisconsin or upstate New York are cheaper and return large cash returns but the house will never go up in value. When you sell the house it will be worth the same amount you paid for it.
Do you want to handle the 3 a.m. flooded toilet or do you want to hire someone to handle all of it for you?
As a self-managing landlord who has 3 houses across the country from her location, I am proof it is possible to self manage from afar.
While it has had a lot of headaches and moments, the savings of one month’s rent, 10% monthly fee along with no middle manager ie rental property management has made it worth it.
On the other hand, I am doing the follow up before and after a big storm. I do try to fly out to do the changeover to new tenants.
If you do not want to do the day to day management, you would need to hire a property manager. In this case your key to success is to find a trusted team member.
You need to be able to trust their judgment on choice of contractors and trust how they handle tenant matters. They are going to be your day to day person on the front who represents not only you but also your money.
Do you want to invest in areas where you can walk around at night or are you okay with a rougher crowd?
Are you looking for young couples without kids or young families? Is there are large quantity of these types of applicants all the time?
The key when buying rental property is to make sure your demographics all match up. You want your proposed rent to match up to your demographic along with your area.
For example, an awful school district is is not going to appeal to the “young family with kids” group. Just like a great school neighborhood is not going to appeal to 4 single dudes who are looking for a party crash pad. So it is important that your house, demographics, and price point all match up.
While there are tons of property types; we are going to focus on single family. Even within this niche you can get started with a personal property meaning you live in it first and rent it out when you move or you can buy a rental property. This means that it is a rental property from day one.
Do you want to be a local investor or are you willing to buy long distance in the best real estate markets?
Being a local investor allows you to be able to check on your properties easily if there is ever an emergency. It also makes it easier to self-manage or supervise a property manager.
Long distance allows you to invest where the market make the most sense for cashflow; not just your local market (i.e. Kentucky versus New York City). You can live and work in California and invest in the Midwest where your money goes a lot further with higher returns.
Do you want cash flow or cash flow and appreciation?
Some markets such as California, DC, or New York City, see large amounts of appreciation that a landlord can anticipate. Other areas such as small town Texas, Wisconsin or upstate New York are cheaper and return large cash returns but the house will never go up in value. When you sell the house it will be worth the same amount you paid for it.
Do you want to handle the 3 a.m. flooded toilet or do you want to hire someone to handle all of it for you?
As a self-managing landlord who has 3 houses across the country from her location, I am proof it is possible to self manage from afar.
While it has had a lot of headaches and moments, the savings of one month’s rent, 10% monthly fee along with no middle manager ie rental property management has made it worth it.
On the other hand, I am doing the follow up before and after a big storm. I do try to fly out to do the changeover to new tenants.
If you do not want to do the day to day management, you would need to hire a property manager. In this case your key to success is to find a trusted team member.
You need to be able to trust their judgment on choice of contractors and trust how they handle tenant matters. They are going to be your day to day person on the front who represents not only you but also your money.
Do you want to invest in areas where you can walk around at night or are you okay with a rougher crowd?
Are you looking for young couples without kids or young families? Is there are large quantity of these types of applicants all the time?
The key when buying rental property is to make sure your demographics all match up. You want your proposed rent to match up to your demographic along with your area.
For example, an awful school district is is not going to appeal to the “young family with kids” group. Just like a great school neighborhood is not going to appeal to 4 single dudes who are looking for a party crash pad. So it is important that your house, demographics, and price point all match up.
