Four Tips to Becoming a Successful Investment Property Owner

Property Manager with Keller Williams Realty Southwest

Four Tips to Becoming a Successful Investment Property Owner

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:


Getting Started

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.

Comments (4)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Stephen, great tips for future investors...thanks for sharing with us.

Aug 06, 2014 10:48 AM
Jeffrey Jones
AZ Home Seekers - San Tan Valley, AZ
AZ Home Seekers,

great advice, not everyone is ready to be a landlord, even though it is one of the best wealth builders out there

Aug 06, 2014 10:48 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Stephen, that's good advice for anyone who is interested in investment property. Owning a rental can be great and there can be disasters, I've had both good and bad experience with my investment property

Aug 06, 2014 11:10 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

Having a property manager advise investors PRIOR to the purchase is KEY...a property may look good on paper; however, if the area is over-built, chances are the rental market is soft and investment will be a poor choice for the long run

Aug 06, 2014 03:46 PM