Re: purchasing a rental property
10-16-2012 09:09 AM
IMO it sounds like you are ready to buy rental property. Your financials are good and you have the basis of an excellent plan.
One of the things that people forget is to first figure out who you want to rent to (target your market). For example, are you looking to rent to college-age students attending a nearby university or families with children or people entering retirement? Each of those rental markets is a different kind of market. By different kind, I mean you will literally be looking for differently types of properties for each type of tenant. A good example is you might want one story villas for the newly retired or two story SFR's for young families. That is just one criteria. There are a whole set of criteria that you would detail prior to your even looking for the physical property.
Get your team together: Realtor, Attorney (for leases and evictions if necessary), CPA/financial professional, handyman or contractor. Join an investment club that specializes in rentals so you can get the real deal for your city/town/state.
Personally, I think rentals are a fantastic way to grow your wealth and its not because I'm a Realtor. Just be careful and don't use your rental like an ATM - but it doesn't sound like you would do that anyway.
Good luck and have fun planning your future!
One advice... don't skimp on inspections.... Make sure the house is structurally sound and that the wiring/plumbing is appropriate...
DIY network shows the horror of bad remodels where a contractor cut into floor joists to plumb bathrooms and do electrical upgrades. Also, problems with shoddy work in upstairs bathrooms can lead to water damage throughout the home.
Due dilligence isn't the place to save $$
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