When I was 25 years old, I decided to buy a rental property. Frankly, I had absolutely no idea what I was doing. Stupidly, I did not ask questions or seek the help and advice from my mother, who was a top producing Realtor. Now that is crazy stupid, right?
I was 25 years old and I thought I was smart ... so smart. But I was wrong.
Don't be like me. Don't repeat my mistakes.
Instead, allow me to help you create a portfolio of rental properties ... the right way.
If you want to start investing in rental homes, here are 10 tips to help you get started. If I had it to do over again, this is exactly what I would do.
- Save your money. Save enough money to have 5% for the down payment, plus at least an extra $5,000.
- Pay all your bills on time to keep your credit score as high as possible. Keep your job and your income stable and growing.
- Seek expert advice in your area. Find a good Realtor who you like, and who likes you. A quality Realtor who is your Buyer's Agent will work for you, with your best interests in mind.
- Research and investigate the local neighborhoods where you live, work, or spend most of your time. Find some neighborhoods you like. Your first rental property will not initially be a rental property; it will be your home. Plan to live in the property for at least one year.
- Call Jill and get pre-approved for your mortgage financing. Since your intent will be to live in the property for 1 to 2 years as your primary residence, you will be able to purchase the home with only 3% to 5% down payment.
- As you preview homes with your realtor, think about the future. Will this home make a good rental property later? Will it create a positive cash flow? Will the value potentially increase? Is this home livable for you for the next year or two?
- Buy the home. Move in. Get Comfortable. Live there for at least one year, maybe two.
- Continue to save more money. Continue to monitor your credit score and keep it high. Continue to keep your job and your income stable.
- At the end of 12 to 24 months, start Step 3 again.
- Remember to call me every year to help you!
Please don't be a hurry to purchase rental properties fast. Try it one time and see how you like being a landlord. If you don't like it, that's okay! But if you do like it, rental properties are a great way to grow your wealth and additional streams of income.
Call me with any questions! It is truly my pleasure to help you! ~~ Jill ~~