Everybody dreams of owning a home, but what if you could own many homes? And what if those many homes paid you a passive income?
That’s the promise of rental property, but how do you make money with rental properties? How much work does it involve, and is it worth it?
There are many ups and downs, but if you do it the right way, you could be aboard the real estate rocket to riches in no time…
Here’s how:
One of the secrets to becoming rich by owning rentals is buying properties that will bring you a profit even when they’re not rented out.
This requires you to purchase properties that are in good condition and will not require a lot of work.
If you buy a property that’s not in great shape and needs substantial repairs, it could take years for you to recover your investment and turn a profit.
If possible, try to find an area where people are already renting out their homes.
There are pockets of America that are rental hotbeds, and the best part is, you don’t necessarily have to live close by if you opt to hire a rental manager.
You also don’t need to worry about finding new builds.
Renters don’t mind renting out older homes as long as they have been renovated recently (think: freshly painted walls and fresh flooring).
This method works especially well if you plan on buying multiple properties at once…
Finally, look at what kind of rent each property brings in per month.
This number should exceed what it costs you per month during both winter months when nobody wants places near college campus or summer months when all those vacationers come back north again after staying down south all winter long.
One big thing to keep in mind, is:
Finding wisely means finding the right property in the right neighborhood at the right price; not necessarily the cheapest property.
This is where a lot of people get it wrong.
They don’t do their research on whether or not this property will bring in enough money for them to make a profit.
Some people think that all properties are worth buying because they have been told by someone else that real estate investing can be profitable.
But this is definitely not true!
There are many properties out there that won’t bring you any profit at all, even if they’re rented out constantly.
So how do we know which houses are good investments? T
he first thing we need to look at is their rental history: how many days were spent vacant per year?
If too many days went by without an occupant, then chances are this house isn’t going anywhere anytime soon!
Sticking closely to these secrets will get you aboard the rocket to riches in no time!
As you may have seen me write before, it only takes one right deal to make your riches. Will your next rental investment be that one deal?
