How to Buy Your First Rental Property

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.

  1. Save your money.  Save enough money to have 5% for the down payment, plus at least an extra $5,000.
  2. Pay all your bills on time to keep your credit score as high as possible.  Keep your job and your income stable and growing.
  3. 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.
  4. 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.
  5. 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.
  6. 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?
  7. Buy the home. Move in. Get Comfortable. Live there for at least one year, maybe two.
  8. Continue to save more money.  Continue to monitor your credit score and keep it high.  Continue to keep your job and your income stable.
  9. At the end of 12 to 24 months, start Step 3 again.
  10. 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 ~~

House for rent