Real Estate Image

Owning Rental Property

Many people today are intrigued with the idea of owning investment real estate. It sound like an awfully simple way to make money: Owning property, renting it out to tenants, and collecting rent payments. The truth is, it can be an extremely profitable venture, or it can be a train wreck.
An individual who is purchasing rental property for the purposes of income has a long road ahead of him, and he should be involved every step of the way to ensure that his investment turns out in the end.
The first step in figuring out if you're ready to own investment property is to ask yourself how much money you have to pay up front. Buying your own home can require costly down payments, but investment properties generally require that plus much more. You may very well have to come up with not only the down payment on the property, but also the cash needed to bring the place up to code and rental standards. There are different standards for a rental property than for a private home. Unless the place you purchase has been a rental before, expect to be shelling out quite a bit of cash upfront.
Keep in mind, there are loans available for those buying rental properties. But rates and terms for investment real estate loans are harsher than those for private homes, since lenders believe there is not as much emotional investment for the borrower, and so their loan is more at risk. Explore your options and check into a few different lenders, trying to get the best loan rates you can. It may not be easy, but if you are not planning to back down from the task, you will not be wasting your time.
Once you manage to get your property renovated and you're ready to go, you'll face the issue of finding good tenants through the screening process. You can certainly hire a property manager to help you out here, as well as to deal with repairs that come up later, but most small landlords are much better off doing this process themselves. Screen tenants carefully and don't let emotional involvement get in the way. Set some standards regarding credit reports and income, and stick to them regardless of who walks in your door.
Don’t expect to make a profit at first. Your rate of return is going to be small, even if you have done the math and figured out your rent cost as carefully as possible. Also prepare yourself for unexpected repairs which are going to bring down your profit margin and require some work on your part. The first three years of a rental property are, typically, the shakiest. If you're committed to being a landlord, you're not afraid to roll up your sleeves, and if you're planning to stick with it, you can reasonably expect a decent profit at some point in the future.

Real Estate Image 2

About The Author:
Peter Dobler is a veteran in the IT business. His passion for experimenting with new internet marketing strategies leads him to explore new niche markets.
Read more about his experience with real estate; visit
http://real-estate.online-business-idea.com

Other Real Estate Related Information

Buy Real Estate With No Credit

Real Estate Image 1The painless way to secure your dream home or first investment property guaranteed. Complete instructions with a 100% ironclad money back guaranty.

 

Get more information

 

Do You Have Bad Credit? Don't give up!!

Our list of lenders and credit card companies are willing to give you another shot. They realize that good people can have bad credit.

Whether you have had minor problems in the past or even bankruptcy, our lenders are there to help you not only receive a loan, but also to re-establish your credit.

Are you ready to get your second chance?

Get more information

 

Mortgage Loan Tips

"Excellent for first time buyers, move-up buyers or refinancing. I cannot recommend it highly enough - this should be required reading for anyone who wants to get a loan."
M. Klinger, Real Estate Broker
Aventura, FL

Get more information

 

Credit Repair - Erase Bad Credit Now!

Are you tired of Bad Credit? - High Interest Rates? Disapproved Credit?


Use my experience today, and I will show you how to get every negative item Removed from your Credit Reports within 1-3 Months. Guaranteed!

 

Get more information

 

Credit Secrets

"How to Clean Up your Credit Report and Wipe All Your Credit Card Debts in Record Time!"

Take a moment to imagine this... On any given day you could be receiving new pre-approved credit card offers in the mail, you could able to purchase a new home without worrying about qualifying for a mortgage, financing for automobiles and boats could be readily available to you, and...you could have piece of mind knowing that should an emergency arrive you would have the resources to take care of you and your family.

Get more information

 


 Navigation Menu
Home
More Real Estate Articles:
Buying and Selling As Is
Buying Foreclosed Properties
Choosing a Realtor
Common Architectural Styles
Consider Purchasing a Fixer
Fixing Up Your Home to Sell
Getting an Appraisal of Your Home or Property
How Much Home Can You Afford
How to Find Houses for Sale
Is a Townhouse for You
Is Bay Area Real Estate Risky Business
Is Housing Too Expensive
Is Your Fixer
Landscaping Tips to Sell Your Home
Making Money Investing in Real Estate
McMansions
Nudge up Your Property Value
One Repair You Must Make
Open Houses
Out of Date Real Estate
Owning Rental Property
Owning Vs
Pricing You Home to Sell
Real Estate Repair Scams
Real Estate The Importance of Continuing Education
Real Estate
Reasons Not To Buy a House
Refinancing Your Loan
Remodeling a Bathroom
Remodeling for Resale Value
Renting out Your Basement
Reversible Negatives When Buying a House
Secrets of Resale Value
Selecting the Best Real Estate Agent for You
Selling Your Home by Yourself
Simple Tips for Showing Your Home
Small Fixes
Small is Beautiful
Sprucing Up Your Yard and Garden to Sell
Staging a Home for Sale
The Final Walk Through
The House Flipping Trend
The Money Pit
The Roles of Real Estate Agent v
The Unique Qualities of a Great Real Estate Agent
Three Things to Avoid When Buying a Home
Tips on Your Real Estate Loan
What is Gazumping
What
Working with Your Home Builder
About
Search
More Ideas
Discussion Forum
Bath Room Remodeling Information
Burglar Alarm Information
Home Security Information
Las Vegas Real Estate
Overseas Real Estate
Newport Beach Real Estate
New York Real Estate
San Diego Real Estate
San Francisco Real Estate
Seattle Real Estate
Costa Rica Real Estate
Home and Business Security Information
Home Decorating Information
Home Protection Information
Real Estate Basics
Mortgage Information
Relocation Information
Hardwood Floor Resource
Home Decorating Information
Home Theater Systems
Kitchen Remodel Information
Time Share Investment Information

(c) 2005-2011 Online-Business-Idea.com the Owning Rental Property resource