Residential property investment has always appealed to you. Owning several properties you can manage yourself sounds like a dream come true. You can make your dream a reality! Here are some tips to get you on your way.
First, Buy For You
If this is your first foray into residential property management, your best bet is to make your first purchase for yourself. Buy a property you can live in for at least a year before renting it out. By investing in a property that you are going to make your primary residence first, you can take advantage of lower interest rates and put down a lower down payment. Purchasing a duplex (or other multi-plex type home) to start where you can live in one side and rent out the other side is an ideal starter rental property.
Rack Up Some Experience
Get some real estate experience before venturing out on your own as an investor and manager of residential property. The best way to ensure you’re successful as a property investor is to become as knowledgeable as possible about real estate. There are many ways in which you can gain experience. Get a job in working with rentals, real estate sales, lending, appraisals, acquisitions, asset management, property management – anything at all associated with owning and managing real estate. Acting as a Rent Manager or Landlord for someone else for two years would be invaluable experience for when you obtain your own residential property.
Be Your Own Property Manager
If you are able to gain experience acting as a Property Manager or Rent Manager for someone else you’ll learn the value of property management services and what the costs are associated with hiring a Rent Manager. Property management fees are not cheap. If you can act as your own Rent Manager, you’ll save yourself these property management fees and reduce your overhead. And if you’ve had prior experience providing property management services, you’ll know exactly what is entailed in this important position and what you need to do to ensure your residential property is well maintained and your tenants are kept happy.
Ride the Real Estate Wave
Housing cycles are generally ten to twelve years on average. Everyone remembers the refinance boom of 2002/2003 and the subsequent fallout shortly thereafter. For every downfall in the housing market, there is a correction during which properties are easier to obtain due to supply and demand. Learn to spot the trends and work them in your favor.
Time Is Your Friend
The longer you own a property, provided you manage it well and ensure its properly maintained, the more equity you’ll build, which means you’ll have a higher overall net worth. The more equity you obtain, combined with a good credit score, the more able you’ll be to purchase additional properties to add to your portfolio. And it goes without saying that the longer you’re a Rent Manager the more experienced you’ll become, making you wiser about future investments.
There is a lot to know about being a Residential Property Manager and real estate investor. By taking the time to learn all you can about real estate and property management, you too can be a successful owner of several residential properties and realize your dream.