Investing in real estate is one of the surest ways to increase your income, but you have to buy wisely. The market goes up and down, but always turns around eventually. If you've decided to purchase income property in Oak Park, with plans for going into the rental business, you need to do your homework, start small, and heed the advice of real estate pros.
You want to start with residential properties. These transactions are almost always less complicated and time consuming than purchasing commercial properties. If you're looking at a house rental that is occupied, you need to discuss the tenant's history with the seller. You want to choose a house with a stable occupant who pays his rent on time and doesn't have a history of constant demands.
Property management companies are huge time savers. For landlords who have full time jobs and busy families, finding the time to manage rental properties themselves can be difficult. There are professionals who will handle all the aspects of renting out houses on your behalf. You will need to find someone with a good reputation, and good rates, to do the job. This option is especially helpful for new investors who aren't familiar with renting properties.
Experts suggest buying in an area where apartment buildings are located. When you do this, you already have people close to your property looking for places to rent. Many prefer single family houses to apartments and are willing to pay more to live in them. You may get enough ride bys that you can save money on your monthly advertising expenses.
Along the same lines, you should try to find rental properties near amenities. If a community college or university is located in your town, you need to look for real estate in its vicinity. Houses that are close to bus lines will attract more renters.
Experienced landlords are a great resource for inside information. Some towns have active landlords associations. If your town has one, you need to become a member. This is great place to get good advice. Most landlords enjoy discussing their experiences and giving advice to new investors. They also know who to call when you need a cheap landscaper, plumber, or electrician.
Do not borrow any more money than you have to. Put down as big a down payment, if you're getting a loan, as possible. When you only make a minimum down payment, most of your profits are going to go to making loan payments. What you need is positive cash flow in order to make money. A positive return on your investment will help tide you over if the market goes down.
Buy properties that are ready to rent when you first start out. Unless you are and experienced rehabber, you should look for houses that are pretty much move in ready, or already rented. That way you'll have money coming in right away instead to having to lay out cash to make repairs.
You want to start with residential properties. These transactions are almost always less complicated and time consuming than purchasing commercial properties. If you're looking at a house rental that is occupied, you need to discuss the tenant's history with the seller. You want to choose a house with a stable occupant who pays his rent on time and doesn't have a history of constant demands.
Property management companies are huge time savers. For landlords who have full time jobs and busy families, finding the time to manage rental properties themselves can be difficult. There are professionals who will handle all the aspects of renting out houses on your behalf. You will need to find someone with a good reputation, and good rates, to do the job. This option is especially helpful for new investors who aren't familiar with renting properties.
Experts suggest buying in an area where apartment buildings are located. When you do this, you already have people close to your property looking for places to rent. Many prefer single family houses to apartments and are willing to pay more to live in them. You may get enough ride bys that you can save money on your monthly advertising expenses.
Along the same lines, you should try to find rental properties near amenities. If a community college or university is located in your town, you need to look for real estate in its vicinity. Houses that are close to bus lines will attract more renters.
Experienced landlords are a great resource for inside information. Some towns have active landlords associations. If your town has one, you need to become a member. This is great place to get good advice. Most landlords enjoy discussing their experiences and giving advice to new investors. They also know who to call when you need a cheap landscaper, plumber, or electrician.
Do not borrow any more money than you have to. Put down as big a down payment, if you're getting a loan, as possible. When you only make a minimum down payment, most of your profits are going to go to making loan payments. What you need is positive cash flow in order to make money. A positive return on your investment will help tide you over if the market goes down.
Buy properties that are ready to rent when you first start out. Unless you are and experienced rehabber, you should look for houses that are pretty much move in ready, or already rented. That way you'll have money coming in right away instead to having to lay out cash to make repairs.
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