How to Buy A House That Will Earn A Fast Monthly Return On Your Investment
With all the great news about Real Estate I don’t have to tell you, I’ll just remind you that it is your time to get in and buy. Properties from the banks are being released into the market for sale daily. The house prices are fair enough that you can buy an asset, hold it for years and earn monthly income from it. Then if you get tired of collecting rental income you can sell it at any time and get all your money back. I don't have to twist your arm to convince you that The best time is now to get started on the dreams you have of investing in real estate.There are many tried and true ways to invest in real estate. But I'm going to tell you how to buy a house that will give a fast monthly return on your investment by collecting monthly rental income.
Find a property that you can afford to buy. Houses for $30,000 rent out just as easily as a house for $100,000. The monthly rent amounts will differ, but you will always find a renter. The easiest way to find the best properties is to contact a Realtor to be put on their MLS search. That MLS Search function is amazing! It can find the exact property that you want to invest in. Price, area, size, number of rooms, whatever, the MLS search will find it. It has a built in personal service for you because as soon as you find the house you want, you can contact the Realtor and they will personally let you in to view it.
Before you start viewing properties it would be a great idea to have your finances readily available. If you have money saved the best thing to do is deposit it into a bank and have the bank write you what is called a proof of funds letter. Some people have gripes about this process but this letter is what is used to show the seller of the property that the money is readily available before they will sign the sales contract. Your only other proof is to get out your camera phone, lay out your green faces and send them a photo message of your stacks of cash. That part is up to you.I highly recommend you have the bank write you a proof of funds letter. If using financing, that should also be ready beforehand. Have the lender give you a letter stating your approved for your loan and how much the loan amount is for.
Now that finances are in order, its time to to start viewing and choose the property. When viewing properties with your Realtor take note of the surrounding homes. Call any for rent sign that is posted to find out the rental rates for the neighborhood. This information is needed
so you can determine how much you can charge for a rent. More important the rental rates may help you determine whether the price of the property you're interested in buying is worth the asking the price. To get the best return on your investment look for areas that will get the best rental rate.
Also when viewing properties be attentive to how much rehab or repairs are needed. If you find a property you like but it needs work call a contractor to get some estimates if you don't know how to assess the costs. This will also determine if the asking price is fair. A lot of times the more work is needed.You must consider the money and time needed to complete the work. The faster you have the repairs done the faster you can start receiving the investment profit return. If you don't know much about house repairs either start learning or call in some professionals.
After you have the property rental ready, you have to decide whether you are going to take on the job of the landlord or hire a professional property manager. Being a landlord is beneficial and rewarding, but it is not easy. It's a second job. If you want to receive your returns passively without having to worry about any of the managing duties, the best thing to do is hire a professional. Talk with your Realtor about managing the property. They can
either manage it for you or refer you to someone that can help. Professional managers are good and affordable.They take away a lot of the headache for a little fee. Hiring a manager can easily be determined by asking yourself if you want to invest for a new job or invest for passive income.
I have told you how to buy a house that will give you a fast monthly return on your investment, the next best thing is to get started. There is a friendly Realtor just waiting to help you.
Tish Johnson
Licensed Florida Realtor
407-241-9189
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