So you have decided to invest in real estate with hopes of renting out your units and paying down your mortgage. Here are some tips for a successful reale state investing from Moneyville:
1- “Research the area where you’d like to buy. Is it in decline or on the way up?” This includes facts such as prices in the area or whether big companies have a presence in the region (remember TheRedPin’s condo profile pages are enhanced with Investment Stats of areas as well as local amenities)
2- “Use a real estate agent who also is an area investor. Ask them to show you their properties and the rents.” It is indeed critical to surround yourself with professionals who have experience in the specific area you are about to invest in. Go with professionals who can show you their track record and can, without fear, speak about their past clients. Remember, if they are credible, they’ll share all there is.
3- “Once you own more than four rental units, find a reliable property manager.” The advice here is to allocate up to 10% of the monthly rent to a property manager. You need someone other than yourself to keep an eye on your properties.
4- “Do not be in a hurry to rent a vacant unit.” Why rush finding a tenant? sure it may feel good both in the pocket and otherwise to rent out the units as quick as possible, but in the long run a bad tenant can cost you so much more including the many months it takes for you to successfully evict them. The advice here is to ask for references from previous landlords and ask for a current pay stub.
5- “Be careful with basement apartments and homes rented to students.” Income’s great on some of these units but there are legalities involved. You have to make sure the building complies with the city’s fire code, and have all the required licenses to operate as they are.
6- “Buy and hold your property for the long term”. Real estate is not a get rich quick scheme. You often have to buy a property and hold it in order to have an income and pay your mortgage.
7- ”If you are investing with others, have a partnership agreement.” It’s great to get together with friends and invest in a property, but this is a business venture and you need to make sure you have a partnership agreement in place. What happens if one of you loses your job and can’t continue with the payments? those and much more go in to the agreement.
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About Me
- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
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