So, you’re ready to start searching for your first rental property. How do you ensure you’re buying the right property? Here are a few tips that can help you decide which property is the best for a fledgling real estate investor like yourself!
Start Small with Single-Family Homes
When starting anything new, it’s always best to KISS (Keep It Stupid Simple). If you’ve never been a landlord before, you’ll likely want something easy to start. Single-family homes can offer a great opportunity for new owners to get their feet wet without having multiple units, tenants, and inevitable issues to deal with and keep track of.
Look for Turnkey Opportunities
While buying an undervalued property that needs renovations can offer a higher return in the long run, if you’re just starting out in the real estate world, you might want to look into buying a property that’s already earning money. This can help offset your initial investment quickly, and you always have the ability to renovate the property to increase your income down the road.
Aim For a Positive Cash Flow
Ideally, you want to be able to put down enough on a property that the money coming in is more than the monthly mortgage or expenses. You want to make sure that once you’ve spent your initial investment, you’ve got money coming in from the property to cover any unexpected maintenance or other expenses that are always going to come up eventually.
Find the Right Tenants With a Screening Process
Once you’ve secured your first rental property, it’s important to find a good tenant to call it home as soon as possible. We offer background screening that is free for landlords and property managers to help you ensure you’re renting to a great tenant every time. Screening potential renters is a great way to ensure you get started on the right foot!