When investors decide to acquire rental properties, they must first decide what they want to accomplish, and over what period of time. The same criteria that is used in any sound investment strategy or financial plan should be used in the rental housing business.
If, however, you have decided that you just want to get rich quick, with no money down like they do on TV, visit our pages on that subject first, then come back here to learn some real world basics and reality.
It is very important to understand that owning and operating rental property is not just an investment, it is a business. Before you purchase any property you should have a plan for how you intend to manage it. You can learn to do it yourself by joining RHOL and spending the necessary time in our Property Management Web. You can also hire a professional property manager to operate you business for you.
Property managers typically charge a percentage of gross income. This usually varies from 5% to 10% of gross income, often with an additional charge for new leases.
The guest areas of the RHOL site contain an good overview of the kinds of information you should know before buying income producing investment real estate. There is much more comprehensive and in-depth information on the subject in the various RHOL Webs The following topics are among those available from the RHOL members' Buying Income Property page. You will get a good elementary education in this part of the site as we analyze many of the factors prospective landlords and investors must consider before making an income property purchase. They include the following pages:
- Property Selection
- Determining Value
- Price and Terms
- Financial Analysis
- Understanding Mortgages
- Negotiation of purchase agreements
- Taking Title
- Tax Ramifications
- Like Kind Exchange
- Tips on Buying Real Estate
- Buying Foreclosures
- A Good Deal for Veterans
- Estate Planning
- Financial Calculators
If you take the time and effort to read or review the pages linked above you will learn more than most real estate investors ever know before they make their first purchase. It is the kind of information experienced investors usually manage to learn eventually -- but the hard and expensive way.
You should find out in our free guest pages that real estate investing in a business you want to learn and then do. When you decide that it is, and you should because it can make you rich like almost no other, please take the next step and join RHOL. Membership will become your most valuable real estate investing and property management tool.
Members may also want to take some of the eCourses offered by our CornerStone Electronic University . These eCourses cover subjects in a more regimented and detailed manner.
The above topics are discussed in much more depth
on our members' Buying Income Property page