Rental Property Investing for Beginners
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About this ebook
TIPS FOR BUYING YOUR FIRST RENTAL PROPERTY AND CREATE PASSIVE INCOME AND WEALTH THROUGH SMART BUY AND HOLD REAL ESTATE INVESTING!
In this book, You'll learn exactly why rentals make the best investments, which property types are best for renting out, and why location matters so much.
This book contains:
Which Properties Make the Best Rentals?
Where Do You Look for Rental Properties?
Pros and Cons of Rental Properties in Expensive and Inexpensive Areas
How to Analyze the Rental Property Before Purchasing
Searching for rental property
Deciding on an Ideal Location for Your Rental Property
Scoping out the Right Property for you
The Due Diligence Process
Offer and Negotiations
Rehab Costs Valuation
Managing Your Finances
Tips for Success in Rental Property Investing
Real estate investing is actually much simpler than you realize! It certainly helps to have the right team on your side, especially when you're not exactly sure what you're doing. Basically, having the right team means the difference between failing and succeeding. You'll learn exactly why rentals make the best investments, which property types are best for renting out, and why location matters so much. Your success relies on having tenants so you need to consider what those tenants are looking for and how to provide it to them. Different properties do well in different types of locations; a multi-family home might not do as well in the city as it would in the suburbs.
It is always wise to bear in mind that being tactful in the real estate business gets you amazing deals without having to spend a lot.
Build your financial future with passive income in rental properties!
Who this book is for:
Anyone who wants to build their wealth
Anyone interested in real estate investment for residential rentals
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Book preview
Rental Property Investing for Beginners - Jason A. Welch
RENTAL PROPERTY INVESTING FOR BEGINNERS
TIPS FOR BUYING YOUR FIRST RENTAL PROPERTY AND CREATE PASSIVE INCOME AND WEALTH THROUGH SMART BUY AND HOLD REAL ESTATE INVESTING
Table of Contents
Introduction
Chapter 1: Which Properties Make the Best Rentals?
Multi-Family Homes
Single-Family Homes
Apartment
Chapter 2: Where Do You Look for Rental Properties?
Networking
Find the property online
Finding the property with a realtor
Find the property on print media
Take some time to visit auctions
Chapter 3: Pros and Cons of Rental Properties in Expensive and Inexpensive Areas
Pros of Rental Properties in Expensive Areas
Better Security
Increased Rental Income
Good Quality of Tenants to Deal With
Appealing Neighborhood
Cons of Rental Properties in Expensive Areas
Heavy Capital
Too Much to Consider
Pros of Rental Properties in Inexpensive Areas
Affordable Investment
Ideal for Novice Investors
High Demand for Housing
Cons of Rental Properties in Inexpensive Areas
Flooded Investors
Tenant Issues
Limited Amenities
Chapter 4: How to Analyze the Rental Property Before Purchasing
Where is it Located?
What is the Market Price?
What is the Reason that the Seller is Offering It?
Take a Look at the Property
Will it Meet Your Requirements?
How Much Work Needs To Be Done?
How Much Rent Will You Be Able to Charge on It?
Chapter 5: Searching for rental property
Build a team of experts
Real estate agent
Appraiser
Investment property financing expert
Chapter 6: Deciding on an Ideal Location for Your Rental Property
Consider the Demand
Employment Opportunities
Population Growth
Convenience
Safety
Transportation
Local Laws
Property Taxes
Rental Laws
Municipal Services
Rent Controls
Low Supply
Chapter 7: Scoping out the Right Property for you
Conduct your research
Pay attention to the condition of the house
Quality of home construction
A solid infrastructure
Conducive floor plan
Spacious rooms
The character of the home and natural light usage
Chapter 8: The Due Diligence Process
Do a home inspection
Research the property’s title
Review zoning laws
Do a land survey
An environmental assessment
Getting an appraisal on the property
Chapter 9: The buying process
Buy and hold onto the property
Flip your property
Wholesale real estate
Commercial real estate
Define your home selection criteria
Determine how you will be financing the property
Begin searching for properties to purchase
Quickly run each property through your list of criteria
Get pre-approved at the bank of your choice
Make an offer on the property you want to purchase
Negotiate and close the deal
Submit paperwork and prepare for closing
Sign title papers
Will you hire a property manager or manage the property yourself?
Establish proper processes like building reusable rental form templates
Research local property managers and ask them for an estimate to make sure the numbers work
Chapter 10: Offer and Negotiations
Designing a Convincing Offer
Rental Property Negotiation Secrets
Research, Research, Research
Seek Alternatives
Don’t Mention Your Best Price
Know the Seller’s Negotiation Tactics
Be Honest
Some Friction Won’t Harm
Negotiating in a Market Filled with Several Homes
Negotiating in a Market with Many Buyers
Chapter 11: Financing Your Rental Properties............................................4
Seller Financing....................................................................................................4
House Hack............................................................................................................4
Selling Some of Your Properties.........................................................................4
Bank Loans
Fix-and-Flip Loans
Chapter 12: How to Make an Offer on a Property and the Negotiation Process................5
How Much Should I Offer?..................................................................................5
Some Negotiation Strategies to Use..................................................................5
Chapter 13: Getting Ready to Close................................................................5
Members Involved in Closing..............................................................................5
What Happens During Closing?..........................................................................5
Setting the Closing Date......................................................................................5
Chapter 14: Creating a foolproof strategy for investing
Buy properties that are 10-20% under market value
Buy a property in a B Class
neighborhood where there are about 35% renters
Set the rent price as 1% of the purchase price of the home minimum
A mission statement..............................................................................................6
Your goals...............................................................................................................6
Desired time frame...............................................................................................6
Markets you are interested in.............................................................................6
Strategize...............................................................................................................6
Set criteria.............................................................................................................6
Create a marketing plan......................................................................................6
Financing................................................................................................................6
Acquisition..............................................................................................................6
Systems...................................................................................................................6
Exit strategy and a backup plan.........................................................................6
Snapshot of current financials............................................................................6
Is purchasing a rental home right for you?.......................................................6
Chapter 15: Owning a Rental Property...........................................................6
Organization is key to lasting success...............................................................6
Use technology to your benefit...........................................................................6
Implement plans to deal with complaints, maintenance requests, and move-outs...............6
Renting out your property...................................................................................6
A step by step process to renting out your property.......................................6
Writing a lease.......................................................................................................6
Automatic lease renewal..................................................................................6
Late fees.............................................................................................................6
Pet fees...............................................................................................................6
Utilities................................................................................................................6
Smoking..............................................................................................................6
Maintenance.......................................................................................................6
Lease termination..............................................................................................6
Cleaning..............................................................................................................6
Landscaping.......................................................................................................6
Fines....................................................................................................................6
Keys and remotes..............................................................................................6
Damages.............................................................................................................6
Renter’s insurance
Items to replace or upgrade frequently
Toilet
Locks
Lights
Outlets
Fire extinguishers and smoke alarms............................................................7
Legal landlord responsibilities............................................................................7
Chapter 16: Potential Rental Property PitFalls...........................................7
More damage by tenants than normal wear and tear.....................................7
General repair costs.............................................................................................7
Property sits empty for more than a month without tenants.........................7
Legal expenses if tenants take you to court......................................................7
The market crashes or you bought a house in a declining city......................7
Chapter 17: Rehab Costs Valuation.................................................................7
Having your basic systems in place...................................................................7
Durability is going to count.................................................................................7
Buy it right.............................................................................................................7
How to Price It All Out.........................................................................................7
Things to Fix Up on Your Rental Property........................................................7
Painting...............................................................................................................7
Look at the flooring...........................................................................................7
Check the appliances........................................................................................7
Focus on the landscaping a bit........................................................................7
Fix anything that is broken..............................................................................7
Chapter 18: Managing Your Finances
Bank accounts
Bookkeeping and administration
Start an emergency fund.....................................................................................8
Know, understand, and predict your cash flow................................................8
Pay down your debt..............................................................................................8
Track your net worth............................................................................................8
Outline your goals and priorities........................................................................8
Chapter 19: Managing Your Rentals...............................................................8
Renting Out Your Property..................................................................................8
Preparing Your Rentals........................................................................................8
Determining Your Rental Price...........................................................................8
Marketing Your Rentals.......................................................................................8
Converting Interests into Visits..........................................................................8
Selecting Your Tenants........................................................................................8
Managing Tenant Movement...............................................................................8
Collecting Rent......................................................................................................8
Dealing with Troublesome Tenants....................................................................8
Maintaining the Rental Properties.....................................................................8
Protecting Your Rental Properties......................................................................8
Chapter 20: Ways to Cut Losses and Let Profits Ride
Chapter 21: Tips for Success in Rental Property Investing.....................9
Start making money when you buy....................................................................9
Focus on consistent residency............................................................................9
Know how involved you want to be from the start...........................................9
Don’t expect too much too soon..........................................................................9
Don’t overestimate your abilities........................................................................9
Don’t underestimate relationships.....................................................................9
Chapter 22: How to Handle Failure in Rental Property Investing.........9
Conclusion.............................................................................................................10
Introduction
Real estate investing is actually much simpler than you realize! It certainly helps to have the right team on your side, especially when you’re not exactly sure what you’re doing. Basically, having the right team means the difference between failing and succeeding. You’ll learn exactly why rentals make the best investments, which property types are best for renting out, and why location matters so much. Your success relies on having tenants so you need to consider what those tenants are looking for and how to provide it to them. Different properties do well in different types of locations; a multi-family home might not do as well in the city as it would in the suburbs.
Rental property investing is a good way to diversify your income. To most investors, this is a great way of boosting their wealth. If you have already decided to invest in rental properties, this is a good move that you have taken. Expect numerous benefits to come your way including the fact that you will be meeting your financial goals within a specified period of time. Making your decision to become a landlord is not an easy move. The fact that you have taken this bold step implies that you expect the best in the future.
To ensure that you invest in a promising rental property, you need to indulge yourself in an extensive analysis of the rental property you are about to invest in. This entails finding out whether you are settling for the best location. Consider factors such as the security of the neighborhood. Talk to landlords within the area to know if the place is secure enough.
It is always wise to bear in mind that being tactful in the real estate business gets you amazing deals without having to spend a lot.
If you have been thinking of investing big, then it is quite likely that the idea of rental property investing must have crossed your mind. Investing in rental properties is what most successful business people do. However, the process of investing your money in rental properties is not as straightforward as you might think. Equally, the process is also not complicated. With a few tips here and there, you will land yourself a property that will make you rich.
Rental property investing is a form of investment that has been there for ages now. The houses that most of us live in belong to people. They belong to investors who decided to invest in rental houses to earn something out of it. Deciding to invest in rental properties is not something that you can wake up one morning and decide to do. One of the main reasons as to why most individuals will rush into the idea of investing in rental properties is of course the financial freedom benefit that comes with it.
In simple terms investment property is an investment that is primarily purchased to generate income. This type of property is one that is bought for the purposes of either renting it out or reselling it for a profit after undertaking some renovations. There are, however, some variations of this term.
Chapter 1: Which Properties Make the Best Rentals?
We all know that mistakes happen: accidentally saying the wrong thing, bumping into someone, or dropping what you were just holding. But while these mistakes are pretty small and can be overlooked, choosing the wrong rental property can really mess up your new real estate company. It can mean a lot of unnecessary stress, be very expensive to fix, and even cause you yourself to feel ill. So how do you make sure to choose the best property?