If you already own, have you thought about buying a house to rent? Rent properties can be a great investment, if done the right way.
Let’s be honest, the money under the mattress gives you security, but the problem is that it does not grow. In addition to the earnings received through the increase in value, the rents can provide good monthly money income.
Buy with a plan
Some investors buy properties from multiple families (duplex, triplex, etc.) while they occupy one of the units and rent the rest. The properties in vacation areas are very attractive, but you must take into account if it will occupy it, and how much time per year, since that decreases the income. Consider what kind of owner you want to be before looking for properties. Also consider that you must have an emergency fund in case of repairs or receive less income than those intended.
Understand your investment
It is important to understand the condition of the property. Unless you know about construction, make sure your purchase is contingent on doing a professional inspection, as you will be required to keep the property.
Evaluate your options
There are many options: location, style, construction, number of units, etc. If it is a long-term investment, then buying property in good areas means a safe deposit of money. Also consider what changes you will make to the property, additions, remodeling, etc. And be sure to find out if the community limits the amount of rental properties.
Get a contract and insurance
Create a written rental agreement, establishing the rights and responsibilities of the parties. This will help you for any legal reason. On the other hand, the insurance protects your investment by covering it in case of damage to the structure or if someone is injured.
Finally, remember to consult with a real estate agent because renting is a business and you should treat it as such.