I would suggest that any agent wishing to sell investment real estate should put a PROPERTY MANAGER on their team along with a CPA and attorney and home inspector. Property managers KNOW the rental market and can ACCURATELY quote area rental rates with KNOWLEDGE
Being a landlord - buying your first investment - Is it for you?
You have 20% down payment, and ready to buy your first investment property. What does this mean to you? First, make sure you have enough reserves JUST IN CASE. Having an investment proeprty means renters, which could mean - NO PAYMENTS. Are you ready? What happens when the hot water heater goes out, do you have the $500 to repair it, or can you do this yourself? Do you have a good rental agreement explaining the late payments, and how eviction works? Do you know how this process works?
There are options for property management, if you are not cut out for those 3 am calls! Murphy's Law steps in a lot, and works its marvels, and when you are least expecting it! Are you ready to have a bill on your rental property that you were not expecting!
Interest rates are down, even for investment properties. There is a bump for investment properties, but still so low, that you can afford more property with these historically low interest rates! You will normally need 20% of the purchase price as a down payment, so the lender is comfortable with the risk!
Now for BIG decisions --- what type of home are you looking for? Do you need a READY TO MOVE IN home, or a FIX UP property? Can you do repairs, or know someone reasonably priced to assist you with these repairs?
or
You need to figure in all the costs that could be included in this investment. If you need some estimates from vendors, get them! Do get caught unprepared! If you are buying a house for $200,000, and believe you can get rental income of $1500, then know what repairs are needed, and what to expect for deferred maintenance!
Are you thinking LANDLORD could fit into your vocabulary in the near future?
Joan Cox, GRI,ABR,CRS, CNE,e-Pro Denver Real Estate
A Denver Metropolitan Realtor
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Relocating to Denver --- Information for YOU!
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
Central Virginia
LandlordWhisperer
View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans
"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous
Good Morning Wallace, thank you for putting back up the excellent post!
Wallace, thank you very much for the re-blog!
I insist that investors I work with use professional property management !!!!!!!!!!
As the owner of investment property, I agree that a GOOD property manager will save you time and money in the long run!