investing in rental property
If you're cut out for it, life as a landlord can be quite profitable. But success isn't assured. Here's what you need to know before diving in. The idea of owning rental real estate seems to be gaining popularity as investors tire of the swoops and swoons of the stock market. As I pointed out in a separate column, not everyone has what it takes to be a landlord. But those who do may find rentals to be a good way to build wealth.Once you've made the decision to buy rental property, your real work begins. Finding a profitable rental property usually takes time, connections and plenty of research.As with any other investment, you should have a good idea how long you plan to own a rental property before you buy it, says Robert Cain, publisher of the Rental Property Reporter newsletter.The longer you plan to own the property, the more you'll probably need to invest in maintenance, repairs and improvements, Cain said."If you're keeping it for 20 years, at some point you're going to be putting a new roof on that property. You're going to be putting in new appliances and doing some major repairs," Cain said. If you're only planning to own a property for five years, by contrast, you'll probably want to avoid making any major improvements unless you're sure you can recoup the cost with a higher sale price.You also may face more investment risk with a shorter time horizon. Although your rental will almost certainly appreciate over 20 years, it could easily lose value in the next five, particularly if you're buying in an overheated market. You'll need a bigger potential annual return to make up for that risk.For many small investors, long-term ownership makes the most sense, said Pat Callahan, an attorney, landlord and founder of the American Association of Small Property Owners. You'll have plenty of time to ride out any swings in the market, and rental income can make a nice supplement to your day job. Find enough rental properties, and being a landlord may become your day job.Experienced landlords find their properties in a variety of ways. Some hunt for foreclosures, making friends with city hall clerks or bank employees who know which properties are about to be sold. Some run ads in local newspapers. Others work with real estate agents who keep their eyes peeled for possible buys.Several landlords recommended joining a local landlord or property owner's association to make contacts. Callahan's Web site offers links to local groups, as does the National Real Estate Investors Association."When you begin to own rentals, all the other investors start coming out of the woodwork," s
Video investing in rental property
News investing in rental property
Buy to let: Turn falling property values to your advantage
Telegraph.co.uk, United Kingdom -
Landlords whose former family home became a rental property, and who remortgaged it to put money into the purchase of a replacement family home, ...
TheMoveChannel - Picture Perfect Porto is an Investor’s dream…
Emailwire -
Dan Johnson, Director of TheMoveChannel.com said, “The strength of investing in a buy to let project in this city lies in the stability of the huge rental ...
Investment is the best reason to smile in Thailand
Property Wire, UK -
The Thai climate is good news for investors, meaning that they have a year round holiday destination for their own use or a rental property that has ...
Annual Report to shareholders
Sydney Morning Herald, Australia -
Net Revenue for the Automotive Leather division (Howe rental income from investment properties continued to Automotive Ltd) increased by 42% to $119.9 ...
ASX:SFC - ASX:CPU - GM
Capital Invesments sorting out property syndication
eProp.co.za, South Africa -
The properties in our portfolio are geared with bank-issued property bonds. As the rental income repays the bonds, we take the money out of the bonds again ...
New Property Investment Opportunities in Riga
Nubricks.com, UK -
Commenting on Riga’s property developments, Dan Johnson, Managing Director of The Move Channel comments “Gross rental yields in Riga are low at around 4.77% ...
Policy changes would help real estate development
Michigan Business Review - MLive.com, MI -
The last eight years or so saw an extraordinary amount of building and investing. We are now in a retraction. A well-capitalized investor can find ...
Tax incentives needed to encourage rental projects
Lethbridge Herald, Canada -
“You just cannot make enough money as an investor in a rental property to justify investing in it and so rental properties don’t get built,” said Bruce ...
Negatives attached to positive cash flow
The Australian, Australia -
There's an ongoing debate in property circles as to whether you are better off investing in positive cash flow property (which gives you a high rental ...
City ‘hot spot’ for medical firms
Denton Record Chronicle, TX -
“He obviously reached a level to make that investment,” Conwell said. “The advantage to physicians having rental property is to get started on their ...
