Real Estate Investing: Now's the Time

People say that your home is your greatest asset. Well, unless it's earning you money, it is not an asset at all; it is a liability. If you have a bit of capital and great credit, or relationships with people who may want to invest with you, this is a great time to jump into the world of real estate investing. Interest rates are at an all-time low, home prices are more affordable than they have been in years, and the market is flooded with houses whose owners would love to sell, even at a bargain. Make a house into an asset by renting it out for a little more than the mortgage, interest, and insurance costs you, and it becomes an asset.

There are many benefits to owning a rental property (or more than one). Buy something that needs a little cosmetic work, make it pretty, and get a tenant. By making those few improvements, the value of the home will have increased. Talk to your bank and see about getting a home equity line of credit. Now you have a bit of money on hand that you can use to invest in a second property. Just repeat the process of finding something that needs a little work, do the work, and get it rented. Keep your rentals in good repair, make sure the yard and home are kept up to your standards, and don't keep renters who don't play by your rules or pay your rent on time. Write up a rental agreement that covers everything, and stick to it. Develop a relationship with a real estate broker, so that they can alert you to any great deals that come on the market.

When looking for rental properties, try to stick to one area. Don't spread your rentals all around town. Become an expert in one neighborhood. Besides, it will be easier to keep an eye on your houses when they are all in one area. Put similar features into the houses, like the same brand of appliances or the same paint, or the same carpet. Ask companies like exterminators or landscapers or HVAC service people for discounts for multiple houses.

If you don't want to manage the tenants, their rent, repairs, and filling vacant houses, hire a property management company. They come with a cost, but in the long run, they save you a lot of stress. Consider their fees as overhead, and add it on to the price of the rent. Make sure you rentals pay for themselves, and have a little left over to pay you, too.