Real estate money-making ideas and programs are often pitched to eager viewers on televison and through radio as “get rich” opportunities, but the fact is there is no “quick” in get rich. Rental properties are a great means of building wealth, but patience, persistence, and excellent sociable skills are all necessary to make it happen.
I am 24 yoa and for just two years now have 해외선물 대여계좌 been in the process to build my financial freedom through owning rental properties. I currently own two single-family homes, one duplex, and a four-unit building in the University town of Ada, Tennesse. With my bank account nearly diminshed from investing in properties, I have come to learn that the programs on T. V. that preach the “get rich quick” by buying rental properties is simply wrong; a big lie.
That being said, they can make you rich, not quick and not easy. As my properties are currently neting me around $10, 000. 00 a year and building fairness on top of that, I thought I would share a few of the keys to financial success by owning rental properties.
First, open a bank account separate from your personal one and use it strictly for your rental business (invesetments). Secondly, if you don’t have enough money on your own to get started, find a partner that is happy to go in on it with you. Third, make sure you inspect the property thouroughly before buying it. Furnaces, water heating elements, roofs, and domestic plumbing are the biggest concerns. Lastly, make sure that you fill out a net-income linen listing all of the estimated expenses for the property (vacancy factor @ 5% monthly rent, maintenance @ 10%, property manager if you desire one, monthly and yard work etc) and estimated income (monthly rent, washing fees, etc). After that is completed, you subtract the expenses from the monthly income and the result is the amount that you can afford to finance.
For example, if you have $200. 00 in estimated expenses every month and you have $550. 00 in estimated income per month, the result would be $350. 00. This means that you can afford to borrow money from the bank and take on a monthly mortgage of $350. 00 and still break even. My rule of thumb is that if you can get a property and break even the frist year, buy it! Next time you rent it out, simply improve the rent $25-$50/month and now you are making $300-$600/year profit. Plus, you are building fairness in the house. Once you get enough fairness built, you then refinance the proeprty and take the money and use it for a down-payment on another rental.
The above part makes it clear, there is tons of money to be amde in rental proeprties, but it takes time, and often the beiggest reason people don’t invest in them happens because they don’t are able to afford to get started and get the first property. If you can get past that hurdle, you are a-ok. Personally, my properties are doing great, and I credit the success to three very important factors:
I buy only properties that are currently hired. Some investors are against this, but it ensures me that we will not have a empty property for atleast a few months (often longer). This helps me build cash up and ensures me that we will not be buying a property and instantly getting hit with a monthly mortgage coming form my own money.
I buy all properties within one town, and that town is a huge university town. The tenant turnover is often higher, but you never get dead-beat people who don’t pay their rent because they have either wealthy parents supporting them in school, student loans that cover their housing, or instructors who have money but don’t buy because they often travel from school to school teaching.