This is the start of a multi-part series on buying and holding rental properties as an investment. Everyone’s situation is different and buying rental property may not be right for everyone. If you have decided that you would like to buy your first rental or maybe add a second or third please keep reading.
What are your goals? Are you looking for cash flow now, asset appreciation or do you want to use it as a way to generate income during your retirement? All of these are possible with the purchase of real estate but depending on what your goals are, there are different ways to achieve them.
Which types of properties are you interested in? You should give some thought as to which types or property you would be interested in. Single family homes, four-plexes, condos, vacation properties or maybe even college student rentals. All of these can be very different and create their own unique set of challenges. Part of this decision will be guided by how much money you have to put toward the investment. It’s OK to start small and work your way up over time.
How will you pay for it? One of the biggest challenges investors will face will be coming up with initial investment needed to buy a rental home. Typically 25% of the purchase price will be needed but there may be other ways to acquire property that a good banker or financial planner could help with.
Coming up in future posts I will be addressing common concerns from beginning investors, how to select and evaluate rental properties, how to finance rental properties and how to manage the property after you buy it.
If you have any questions please contact me by email at firstname.lastname@example.org .