CHAPTER 9 A Guide to Investing in Rentals
Rentals are another great way to earn a profit and create a lifestyle that has more freedom of time!! If you are looking to invest and spend as little time as possible managing your business, you probably want to learn how to create a portfolio of rental properties! Let’s take a look at the benefits and risks associated with this type of real estate investment and learn more about it!
FINDING THE RIGHT PROPERTIES
There are plenty of different kinds of properties to invest in and turn into a rental. The first decision you need to make is whether you’re interested in commercial or residential properties. If its commercial properties, do you want to invest in strip malls, office spaces, or self-storage facilities? If your interested in residential, do you want single-family homes, condos, multiple-unit homes, or smaller apartments? We’ll get into the details of these different types of properties in a little bit. But regardless of whether you’re planning to rent out a condo or a strip mall, it’s important not to look for the "cheapest properties". When it comes to rentals, this isn’t necessarily the right strategy. You should be more concerned about how much money you can make each month with the rental and what tax deductions will you get to receive with the different price points. Once you decide if your interest is in either single family or commercial real estate, you then need to decide how you will manage the property. Once you buy the property, will you learn how to become a "landlord" yourself and deal with the "tenants and toilets", or will you be hiring a property management 77
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