What do you need to consider before buying a rental property?

Income Potential The first thing you’ll need to consider before investing in a rental property is how much income it has the potential to provide.

Location This is another attribute that you should highly emphasize when searching for rental property.

Who Is Your Ideal Tenant?

How to find the money to buy a rental property?

Your own personal savings You can use your own savings in order to buy a real estate investment.

Leverage the equity in your home This is the most common method that I see being used by fellow real estate investors.

Use a Vendor Take Back Mortgage This is a fantastic way to find money in order to buy a real estate investment.

Should you buy a home or keep renting?

When you rent, you own nothing-the money goes to someone else. So lots of people argue that you should buy a home because one day you’ll pay it off and it’ll be yours, rather than continuing to pay rent for the rest of your life. This argument touches on opportunity cost: the value of an option you’re giving up to choose something else.

How to make money renting houses?

– 1 Cash Flow. The main way a rental property can make money is through cash flow. Simply put, this is the difference between the rent collected and all operating expenses. – #2 Amortization (Principle Pay Down) With every monthly payment made toward your loan, a portion of that payment goes to pay down the principal amount owed on the property. – Appreciation. The average appreciation rate for homes is heavily dependent on local factors as well as some booms and busts of the U.S. economy. – Equity. Amortization and appreciation contribute to profit by virtue of another concept called equity. – Tax Benefits. Real estate offers some of the most generous tax advantages of the asset classes.