Investing in rental property is one of the best ways to retire rich with your real estate profits. It’s also a great way to ensure you’re earning passive income well into the future. So, even if you have no plans to end your real estate career anytime soon, it’s a good idea to be prepared for the day when you leave real estate sales behind you. If you invest in residential rental property the right way, you’ll be able to retire when you’re ready, and you’ll likely be able to retire rich as well.
Before you start investing in rental property, it’s imperative you learn more about the process. The best way to learn about buying rental property is to listen to the experts who have done it successfully. One of these experts, recent podcast guest Kathy Fettke, is an excellent source of information on investing in real estate.
Not only is she an active realtor and an avid real estate investor, she wrote Retire Rich with Rentals, the authority on buying rental property. In this post, we’ll explore a few of her tips on investing in rental property. Listen to the podcast interview below for additional tips that will help you avoid costly real estate investing mistakes.
Research Potential Earnings Before Investing in Rental Property
Most real estate investing mistakes occur due to poor planning and sloppy research. Before you decide to dip into your real estate profits to invest in residential rental property, you want to be fairly confident that this investment is going to pay off. You need to know roughly how much you can expect in rental earnings from this property monthly. To come up with a figure, use comparable rentals nearby. After that, consider the price and ask yourself: does the property seem worth it?
Find Opportunity by Investing in Rental Property in Areas of Growth
Investing in expensive property markets can pay off, but it’s a gamble. The safer, better approach is to look for markets that are growing or expected to grow in the future. Not only will this help you save some of your hard-earned real estate profits by avoiding inflated prices, it gives you more potential to capitalize on market growth in the future if you elect to sell down the road. Long before that day comes, however, you’ll be enjoying reliable rental earnings from a property that didn’t cost you nearly all of your real estate profits.
Hire Property Managers After Buying Rental Property
Electing to manage your own rental property might be one of the biggest real estate investing mistakes you can make. Unless you’re intimately familiar with rental law for the state you own rental property in, you’re taking a huge risk. Besides, most property managers charge very reasonable rates and are well worth the peace of mind. If you’re willing to part with real estate profits by investing in rental property, you really should be willing to invest in professional property management as well.
If you want to learn more about the strategies you can use to retire rich by investing in rental property, be sure to listen to the complete podcast interview with Kathy Fettke.
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