How To Buy My First Rental Property

It takes the right mix of demand and location to maximize your return.

How to buy my first rental property. It also enables you to weather tough economic times. Graham is an avid real estate investor and. So for the first year we rented that home we merely broke even instead of pulling in a profit. I saved it all combined it with my personal savings and used it to fund more property purchases. However before you can enjoy the latter benefits you need to first know the 12 steps to buying your first rental property.

You ll be ready for your first rental property. Let s say you find a rental property between 50 000 and 80 000 you ll need to save between 10 000 and 16 000 cash for a 20 down payment. Paying cash can help generate positive monthly cash flow. Take a rental property that costs 100 000 to buy. I focused on buying cheaper properties.

If you have been interested in owning a rental but weren t sure what steps to take here are a few tips on how to buy your first property. Since buying my first investment property i have not touched 1 of the rental income it generates. Buying any property and calling it a rental is not a recipe for success. First time rental property buyers should only buy a property that cash flows. It s a cash heavy investment and unless you buy the property extremely discounted your monthly profit on a home isn t going to be much.

As i grew my portfolio i focused on buying properties in the 65k 85k per unit range. The beauty of buying your first rental property is that you will soon join countless others on the road towards retirement savings achieving investment goals and inevitably meeting your financial objectives. I use a great property management company for all of my rental properties and i recommend all my buyers do the same. The problem was i had based the rental price on our old mortgage bill not the new one. In this video graham stephan will guide us through the initial steps of investing in your first rental property.

Before you get too far you need to make a plan for what you want to do and how you plan on doing it. If this is your first time buying a real estate it s a good idea to start with a lower cost property. Are you looking for a single or multifamily property. Fortunately we were able to readjust the rent and raise it to take the higher property taxes into account once the first year s rental lease came to an end. Based on my own experience with my other rental properties in the area and based on my property manager s opinion i knew this was a solid legitimate number to work with.