Buying real estate is one of the best investments you can make to grow long-term and even generational wealth. Many property owners can count on monthly cash-flow from their rental properties. Also, the tenants are paying down the mortgage debt and the property will likely appreciate in value over time. Many people fear that having rental properties will be nothing but headaches and do not want to deal with clogged toilets or other problems that being a landlord may cause. And while, you may get an occasional repair call, a much bigger headache would be not having a tenant in place to pay down your mortgage and give you monthly cash-flow. If you are convinced that you want nothing to do with managing a property, you can hire a property manager. Just due your homework and get a reputable property manager.
There are systems you can put in place that will make being a landlord much easier and automated. Check out Landlordology. This platform will allow your renters to pay the rent online. It also has some helpful documents and very informative articles. If you get the property investor “Fever”, check out Bigger Pockets. This is a community of property investors that share information, tips and they even have a market place to look at properties for sale. The Bigger Pockets podcast is a vault of valuable information about real estate investing and they have an excellent blog. You can sign up for their monthly deal analyzer to help you analyze deals. If you are interested in multifamily, consider the Jake & Gino Multifamily Academy.
I joined the Jake & Gino Multifamily Academy, have learned some great information and highly recommend their program. My wife and I are waiting for the multifamily space to pullback a little bit and hope to purchase our first property within the next year or so. Jake and Gino teach about buying right, financing right and managing right. They focus on “Mom & Pop” apartments that have no systems in place and are burnt out and ready to sell. If you treat your multifamily like a business (Because that’s what it is) and put systems in place, can increase the rents and implement RUBS (Ratio Utility Billing Systems). Many of these mom and pop apartments pay for water bill. With RUBS, you can bill the tenants for their water usage. This will add value and increase NOI, which will increase the value of your property.
After doing some research on the subject and joining local Real Estate Investors (REI) Clubs, learning all you can, it’s time to take action and get that first rental property under your belt. Once you get your first deal under contract, order your home inspection and make sure your contract has a clause that will allow you to back out of the deal, in the event there are costly repairs that are outside your budget. There is also a financing clause that in the event your loan does not go through, you can get your down-payment back. If we can be of help with any of your Brevard County home inspection needs, contact us at 321-368-9921.