What To Look For When Buying A Rental Property (How To Buy A Rental Property)

What To Look For When Buying A Rental Property (How To Buy A Rental Property) Real Estate 101

When you're buying an investment property to rent for the first time or you have experience under your belt, you'll find this video helpful as I explain how to invest in rental property the right way.

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*** Recommended Videos To Watch ***
• Buying First Rental Property: https://youtu.be/WntjWBHSg94
• Buying First BRRRR Deal: https://youtu.be/2r4Lg-nz3kI
• How To Buy A Fixer Upper The RIGHT Way: https://youtu.be/H4ijyw-dJog

If you want to know how to buy your first rental property the right way or even if you have some experience, you want to focus on these 5 main things.

Real Estate Investing 101

1. Location
When you're buying a house to rent out, location has to be at the top of the list. This is what's going to help you rent the property out with better quality tenants or lead to better appreciation. I like to target C+ to B- neighborhoods because they give you a good middle ground where you should see some solid appreciation but still cash flow and have reliable tenants that will pay rent on time.

2. Good Numbers

When asking how to buy investment property, right up there with location has to be good numbers. Because if the property doesn't make you money, then what's the point?

3. Value Add

Going in line with numbers is value add. I've found that buying fixer uppers where you can add value is the best way to expedite your journey to scaling your real estate portfolio. The rule I like to use is the house flippers 70% rule. If you're buying for a rental, you can afford to offer slightly more than what a flipper offers and so sometimes I may go to 75% of the ARV minus Rehab.

4. Liquidity

Real estate is not a liquid investment but there's things we can do to avoid it being even less liquid such as buying a house where it's on a Main Street or backing up to a highway or in a flood zone. These things can make it harder to attract a buyer when it comes time to sell and sometimes also make it less attractive as a rental.

5. Low Maintenance

My goal with my properties is to keep them as low maintenance as possible. The biggest thing that can help with is having sound systems in place such as your roof, hvac, plumbing, and electrical. It's important to factor these things into your numbers because having a newer roof or updated plumbing could save you thousands of dollars during your hold of your rental property.

Видео What To Look For When Buying A Rental Property (How To Buy A Rental Property) канала James Allen