Quick Tips for Purchasing Quality Rental Properties in South Florida
Have you ever wondered how some investors are able to make hundreds of thousands of dollars per year in profit owning and managing rental properties while others barely stay afloat? The reason is that these investors took the necessary time to research and execute a business plan that most rental owners fail to create. Here are some tips to managing your rental property successfully.
Tip #1: Create a Game Plan
Before buying a property, have some idea of what you intend to do with it. Do you want to establish a single family residence or a multi family residence? Are you looking to purchase a commercial property or a residential real estate? Are you looking for a long term investment or a short term gain? All of these are important factors before deciding upon the property that best suits your needs.
Tip #2: Do Your Homework
While this step is perhaps the most crucial in the process, it is often overlooked by investors rushing to make their deal. While you must act fast once you know what you are after to secure a steal, initial homework and research is very important. One major factor to consider is location. In South Florida, location to key landmarks can play a major role in how successful your rental property becomes. Look for an area desirable enough to attract the right people, and compare the rents of other properties in the area with what you need to recoup your investment. Remember, it doesn't matter how great your property is if your prices drive all potential tenants away.
Tip #3: Have Enough Put Away to Prepare for Eventualities
Throughout the renting process there will always be times when unexpected repairs or vacancies will take you by surprise. The big mistake many investors make is not preparing for this. Make sure you have enough put aside that these events will be able to be taken care of in a timely manner and will cause both you and your tenants as little pain as possible.
Tip #4: Earn a Reputation for Quality
Again, it does not matter how good your building is if you have no tenants. A potential tenant wants to know they have a landlord they can count on to provide them with quality housing and reliable maintenance. As tempting as it may be, do not take the cheap way out with your properties. If you prefer not to deal with tenants, a management company may be the best solution for this. The company you hire will be responsible for finding and providing support to your tenants.
Tip #5: Step Away From Conventional Purchase Listings
The most significant factor in whether your venture is successful is the amount of equity you stand to gain based on the initial purchase price. Because of this, public listings like HUD or foreclosures are very popular for the average investor, but unfortunately the competition over these properties drives the prices up. Instead, look for a motivated seller lead or a wholesale property. These are private listings that eliminate the need to deal with the bank and therefore allow the savvy investor to make the best bargain possible.
Best of all, these listings are not found where the public can simply find them. All you have to do is become a free member of www.MyHouseDeals.com. As a member of MyHouseDeals.com, we'll keep you updated about new properties in your area daily, and each new house added to the list comes with full descriptions, value and repair estimates, and full contact information for the seller. That's right. We do all of the leg work for you, so all you have to do is focus on establishing and expanding your business. Become a member for free today by clicking the button below!