What to Consider Before Becoming a Landlord
Michele Lerner’s recent article in The Washington Post includes several factors to consider before purchasing your first real estate investment.
If you’re considering making your first real estate investment and planning on becoming a landlord, it’s important to educate yourself and generate a strategy before you take action.
Michele Lerner’s article in The Washington Post provides helpful information as a starting point.
3 Things to Consider Before Becoming a Landlord
1. Long-distance investing may work for some.
Some investors look to other housing markets to invest because – among other reasons – they’re priced out of their own market or believe they can receive a better return investing elsewhere. Real estate agents located in the area you’re considering can be a valuable resource.
2. Do a cost-benefit analysis.
If you seek financing for the investment, it’s important to understand options and conditions for financing investment properties, which may be different than financing owner-occupied real estate purchases.
3. Don’t want to be a landlord? There are options.
If you end up with a long-distance investment or just want to be less involved with landlord duties, you might want to consider hiring a property management company.
Typically, these companies charge about 8 percent of the rent for their services, according to the article.Read about more considerations – including potential pitfalls and expenses involved in being a landlord – here.
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