Lately I’ve been talking to more and more of my clients about investment properties.
You see, the loosening of the credit markets is making it easier for investors to get loans. And, unfortunately, the housing slump caused a large number of homeowners to lose their home. They have to live somewhere, and for most of them that means renting.
And that means that now is a great time to be a landlord! Demand for rental housing has never been higher, and that’s not predicted to change any time soon.
Not only does owning property allow you to generate a second source of income, those rent checks are part of what helps you build equity in your investment.
Talk to a wealthy investor, and you’re likely talking to someone with multiple properties. Ideally, purchasing three or more properties in one geographic area can really pay off.
Do you want to be a landlord?
You’ll like be able to use the same service providers (including handymen) for each property. It’s also a lot easier to keep current on values when you’re not watching multiple areas, but are instead keeping an eye on one or two neighborhoods.
Or you may want to think about a duplex, or triplex rather than a single-family home. Yes, the cost will be more … but you may be surprised to see that the incremental increase is less than you expected. And of course, there is higher rental opportunity. Another bonus? It’s easier to maintain one building with multiple units than two or three buildings in scattered locations.
While you may be interested in owning investment real estate, you may not love the idea of getting the 2:00 am phone call when the hot water heater bursts or the furnace stops working. Of course, there’s a solution for that too. Property management companies, both large and small, exist to help investors.
You don’t have to do it all
In fact it’s probably not a good use of your time or energy to do so! Expect to pay between 8% and 10% of the property’s rent to the manager.
But probably the most important question to ask yourself before you purchase investment property is this: am I willing to evict a tenant?
At some point in your career as an investing landlord, you will likely be forced to take action against a tenant. If that thought of that creates unbearable anxiety, you’re not going to enjoy being a landlord – no matter how lucrative the possibilities.
I have my eye on some properties, which would be great for an investor. To learn more, give me a call at (360) 223-4501 or send me an email at josh@denfinder. I look forward to chatting with you about the possibilities!
Hi! We’re Josh and Jolene Baijot, the creators of this website. We’re also commercial real estate brokers in Bellingham, Washington. Thank you for taking the time to read this blog post. We appreciate your time spent on this site. You can connect with us on Facebook, Instagram, or contact us through this website.
