How to Begin Investing in Baton Rouge Real Estate – Part 2

gbqvzzpcpkda_05houseexterior0557-web

Buying income producing rental properties in the Baton Rouge area can be financially rewarding, but there are some challenges to consider.

In Part 2 of how to get started in Baton Rouge Property Investing, I want to explore some areas of concern that my clients frequently mention. Just remember that investing in rental property is not for everyone and it may not be right depending on your current circumstances.

What if I can’t rent the house or it is vacant too long? Having reserves of at least three months’ worth of expenses will definitely help with those times the house is vacant. With proper planning you should be able to acquire houses that can be rented without too much difficulty.

1j9axh0rcy6o3_02agentcouplefrontdoor0255-web

Spend some time with your tenant prospect before making a decision.

How can I make sure I won’t choose the wrong tenant? There are no certainties but you can take steps to increase your odds of finding a good tenant. One way is to have a formal screening process in place. Many property owners have had success using credit reports, payment histories and background checks. There is also no substitute for spending some time with prospective tenants and getting to know them before you make a decision.

How can I lessen the likelihood of unexpected repairs and expenses? There are a number of strategies that can be used to handle this problem. The first is to have a professional property inspection, second is a home warranty and third you will probably want to implement a preventive maintenance checklist to catch problems before they get bigger, and more expensive.

Will I receive calls from tenants at all hours for repairs? There’s just no way around this, some repairs can be emergencies and you will have to react quickly. For routine maintenance items, consider having tenants email you.

How do I select a property to buy? This is where the expertise of a Realtor comes in. I have a multi-point list of criteria that I use to select properties as well as a handful of financial calculators and spreadsheets I use for the benefits of my clients.

How do I know my investment won’t lose value? You don’t, real estate investing is not a sure thing but it is the IDEAL investment.

I – Income – the property generates income while it is rented

D- Depreciation – this is a complicated tax issue, see your tax professional

E – Equity build up – paying a monthly mortgage adds to your equity

A – Appreciation – most of the time, real estate increases in value

L- Leverage – this is a way to increase your buying power by borrowing funds

If you are interested in becoming a real estate investor in the Baton Rouge area please contact me, I can help.

coldwell-banker-one-logo

Advertisements

About saporitorealtor

I am a Realtor working in south Louisiana to help my clients with their real estate investments. Whether it's buying, selling or building a portfolio of investment properties, I will advise you every step of the way. Coldwell Banker One 5025 Bluebonnet Blvd. Baton Rouge, LA 70809 225-925-2500 or 225-335-5970 ssaporito@coldwellbankerone.com www.scottsaporito.com
This entry was posted in Buying Real estate, Real Estate, Selling Real estate and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s