How to Profit from Rental Properties
Press Release (ePRNews.com) - ISLAMORADA, Fla. - Apr 20, 2017 - Per Jan Keller, Top Producing Islamorada Real Estate Agent for Coldwell Banker Schmitt Real estate and owner of Kellerporterteam.com-Everything about Real Estate in Islamorada and the Upper Keys,”Several potential pitfalls await all real estate investors. If you know what these are before you make the leap, you’ll be far ahead of the curve. It all comes down to thinking long-term.
Here’s how to profit from rental properties:
● Be sure to know your monthly carry costs. Before you even begin your rental home investment property house hunt, you should be in-the-know about its monthly carry costs. These include, but are not limited to: the mortgage, insurance, property taxes, maintenance, and property management. Get a good grip on this before you enter the market to buy a rental home.
● Don’t buy unless the price is right. There’s a rule of thumb when it comes to purchasing an investment rental property: the money is made at the buy. In other words, if you aren’t getting a really good deal, it’s best to keep on looking until you find one. The less exposure you have going in, the better.
● Hire a reliable, reputable property management service. Don’t talk yourself into being a landlord. It’s just not what you think it is and it is for this reason, savvy rental property investors hire property managers. There are many benefits, marketing, including tenant screening, maintenance, rent collection, and much more.
● Build a vacancy fund. Make no mistake about it, you will experience vacancy periods. So, be proactive and build a vacancy fund of three to six months’ of carry costs. This way, you’ll have peace-of-mind when it’s not rented out.
● Hire a reliable, reputable tax professional. Another huge benefit you’ll enjoy is having an experienced tax professional at your disposal. After all, no one likes doing their taxes and you’ll get the best possible outcome.
Don’t panic during market fluctuations. Although the real estate market continues to show great health signs nationwide, local dynamics can drive down the value of a home. If this does happen, do not panic. By doing the above, you’ll have enough to endure until it starts regaining value.
For more information about Luxury Homes for sale in the Upper Florida Keys, please contact Jan at http://www.islamoradajan.comSource : jan Keller