It’s still a great time to buy a home, and if you’re thinking about investing in a rental property, those low prices and low interest rates make this the best time in years to get into the market..
Michael O’Brien of Peluso Properties, joined The Rhode Show with some important tips.
What should we consider when thinking about investment properties?
Make sure the numbers work.
Just like any business venture make your income vs expenses aren’t in the red. Make sure you factor in putting money away for any repairs that could pop up unexpectedly.
Should the house be something that matches our own personal preference?
Don’t focus on personal preferences.
Don’t look for something you want to live in. Look for something that’s livable and is fully functioning.
Something that may cause people to hesitate, managing and maintaining the home, right?
Consider professional management.
The fee varies, but a property management firm will find tenants and run background checks for you. Also some management firms will arrange lawn care and snow removal as well as be the primary contact for tenants when something needs to be fixed.
What about insurance?
Make sure you are properly insured.
Find an experienced insurance agent who will make sure you have proper insurance to protect your personal assets from a potential lawsuit.
How can we really know if we want to take the plunge?
Be willing to take a risk
Like any business venture purchasing an investment property can be a large risk. Make a list and weigh out the pros and cons personally and professionally before doing so.