Four Tips to Becoming a Successful Investment Property Owner
Buying real estate is no longer a sure path to riches. However, with careful planning you can make a steady income through the purchase of residential rental property. Here are four tips to becoming a successful investment property owner:
The easiest way to start is by choosing to rent your own home instead of selling it. Your firsthand knowledge will help you understand any maintenance issues when they arise. You will also be able to take advantage of owner occupied financing. If you are buying rental property, single family homes and small multi family residential properties are easier to buy than condominiums.
Whether you use your own home or buy property outright, it is vital that your rental investment is in the right location. Spend ample time getting to know the neighborhood and the surrounding area. Why would this be a desirable area for renters? What is the average rent rate? Avoid subdivisions with high crime, poor schools, and vacant or neglected properties as it will be difficult to attract and keep tenants.
Understanding your expenses is an important step to becoming a successful investment property owner. Don't make the rookie mistake of assuming that profit equals all the funds left over after the monthly mortgage payment is paid. Be sure your accounting includes your other expenses such as: garbage collection, water, evictions, vacancies, office supplies, advertising, maintenance, improvements, and taxes.
Maximize Your Profits
A good property management company will help you decrease vacancies and increase your return on investment. At PMI of Houston, we can help you set the best rental rate for the area and have systems in place to make repairs less expensive. We work hard for you and even waive our fees during vacancies. Let us help you reach your goal of becoming a successful investment property owner.
PMI of Houston is a full service property management company serving Katy, Sugar Land, Fort Bend, Missouri City, Richmond, Rosenberg, and the Houston area. We offer competitive and simple flat fees with no hidden costs. Contact us to learn more about our real estate management services.