-6 easy steps to buying cheap properties, find great tenants that add value to your property for free and making a killing in rental income while sipping on cocktail on the beach.
Whilst that's every one's fantasy and not easily realized, buying rental properties can be a great way to build your wealth. As in most real estate investments, it is sometimes difficult to know if you have found a good deal-especially for the first time. Here are some things to look for to be sure that rental is a great investment.
1. Location, location, location. This mantra can never be over emphasized. Is the property close to shops, schools and transport? Is it in a good area? Near water or have a great view?
2. Numbers. Run the numbers. Get every last expense figured into your calculation and be sure that you will have positive cash flow from the start.
3. High home prices. Look in areas with high home prices, as this creates rental demand. What do people do when they can't afford to buy, or are here only for a short contract? They rent-usually in posh areas. High home prices have sufficient 'button' room to reduce rents while still offering reasonable returns when the rental market is depressed.
4. Low maintenance buildings. Avoid old homes that are in needs for to many repairs. Low maintenance means fewer headaches and more profits.
5. Good rental history. Ask to see the rental history. there should also be maintenance history. Note how long the tenants are staying on average, and how well they pay on time.
6. Owner/Manager out of the country. These properties are often the best deals, because it is though to manage a property from a distance. Such sellers are often happy with a quick sale than hold out for a better deal while the property remains unoccupied and deteriorating.
If structed properly and with a bit of planning and imagination, one may still be able to slip in that occasional pink champagne whilst seeing returns on their investment in rental properties in the islands.