I was once told, “If you want to invest your money, you should invest in real estate, especially if you want to invest in something that only increases its value.” It has been shown to be a true statement. Call several local real estate offices and ask if they have any rental properties. You may be surprised at how many real estate agents have rental properties. Why buy a rental property? Because it’s an easy way to make your money make money for you. Are there any tips for investing in rental properties? Yes, there are several ways a person can do this.
The easiest tip would be to look in the local paper for low-priced sales on homes, manufactured homes, and apartment complexes. Secure a loan through your bank that will allow enough to cover some remodeling expenses. Set a rental rate to cover your payments and rental insurance. Keep in mind that the idea is to make money, not lose money.
Contact the Land Commissioner’s office in your state capital. The land commissioner’s office publishes a book of delinquent property taxes in every county in your state. This book is sent every three months on a quarterly basis. This book is free to the public. Once you get your book from the land commissioner’s office, you will need to go to any real estate office and get a book that provides the description of the land and where it is located. Research the property before you buy it. This is by far the best of the Tips for Investing in Rental Property. This is how real estate agents buy your property. So keep in mind that when you’re making an offer, you’re most likely bidding against real estate agents with easy money in their pockets. The way this really works is, after the taxes have fallen behind for four or five years, the state reclaims that land and auctions it off to the highest bidder.
If you are interested in vacant land to start a subdivision, such as a mobile home park or to build houses on, you will need to find some answers to a few questions. Is city water and electricity available? Does the land require urban sewage or septic tanks? If you require septic tanks, will the land pass the benefit tests? These are the most important questions to ask when buying vacant land.
Setting up your rental property as a home business is another of the Tips for Investing in Rental Property. This is so you can claim deductions on your income taxes. Because any repair you do is tax deductible. For every month your property is vacant, you can claim lost income.
Remember, it takes money to make money, so don’t be afraid to spend a little. Find out and do it thoroughly, this is your future and that of your family. Seek the advice of a lawyer on how to set up your rental agreement, or if you need to check tenants’ credit. The list is endless. So have fun and invest in your future.