One of the ways that many people decide to invest in real estate, or create a passive income stream, is to
purchase a rental property with the intention of becoming a landlord.
My family of 5 live in California, have a ton of equity in our home, are heavily invested in the stock market through IRAs and other investments and are
considering purchasing a rental property in Kauai.
While many investors
who purchase rental property focus on residences intended for year - around living, there is no denying the fact that vacation rental properties can...
I would have preferred to invest close to where I live, but I live in NYC and real estate is too expensive so I decided to
purchase a rental property out of state.
In order to ensure long - term success
when purchasing a rental property, it's important to develop a strong, reliable team that can help you through the buying process, and your lender is a BIG part of that equation.
Make sure you do your homework on the tenant
before purchasing rental properties with a tenant already in place, or buy an untenanted property and put in a reliable tenant from the get - go by using our proven screening methods.
If I were the co-investor who provided all the money to
purchase a rental property with my investment partner managing the property, I would want a minimum 80 - 20 split on the cash flow until I recovered all my invested cash.
Of course, we're also building our investment portfolio, mostly maxing out our 401k and planning to
purchase rental properties in the next two years.
It depends on when you plan to
purchase your rental property I supposed.
Your overall goal in
purchasing a rental property is to produce income right now, and possibly some equity in the long run, so you need to focus on properties that will allow you to achieve that goal.
May was a wild ride for me with
purchasing another rental property (unexpectedly), so you're right in saying you never know what is going to happen!
In about 2 years I will have saved enough to
purchase another rental property (its CA, it takes a while to save for 25 % down), and 2 - 4 years after that, another.
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We purchased rental properties.