How To Buy My First Rental Property

As i grew my portfolio i focused on buying properties in the 65k 85k per unit range.

How to buy my first rental property. First time rental property buyers should only buy a property that cash flows. Before you get too far you need to make a plan for what you want to do and how you plan on doing it. 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. Are you looking for a single or multifamily property. However before you can enjoy the latter benefits you need to first know the 12 steps to buying your first rental property.

It takes the right mix of demand and location to maximize your return. Paying cash can help generate positive monthly cash flow. I focused on buying cheaper properties. 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 best way to limit your risk and increase your odds of success is to make sure you are putting enough money down to be cashflow positive. 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. 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. 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.

It also enables you to weather tough economic times. In this video graham stephan will guide us through the initial steps of investing in your first rental 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. With rental income taxes depreciation and income tax the cash buyer could see 9 500.

Graham is an avid real estate investor and. 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. You ll be ready for your first rental property. The problem was i had based the rental price on our old mortgage bill not the new one. Take a rental property that costs 100 000 to buy.