There are well over 20 million rental properties scattered throughout the U.S. right now. These properties include almost 50 million individual rental units.
At least some of these rental properties have been purchased by large companies that use them to generate rental income. But there are also many individuals who purchase rental property investments each year to do the same thing.
Want to join them? Then you should start shopping around for your first rental property investment. Adding it to your investment portfolio will be one of the best decisions you ever make.
Here is how to make your first rental property investment and get your property portfolio off to a fantastic start.
Start Small When Making Your First Rental Property Investment
When you’re buying your first rental property investment, you might be tempted to go all-in by purchasing the largest property you can afford. But you’ll usually be making a big mistake if you do this.
Rather than shopping for a larger rental property or even a rental property that contains multiple rental units, you should kickstart things by shopping for a small home. It’ll let you get your feet wet when it comes to buying property and using it to generate rental income.
If you go too big when buying your first rental property investment, you might not be able to manage it. It could come back to bite you and make you regret not starting things off a little slower.
Look for a Property Rental Investment That Will Pay Off
Prior to purchasing a rental property investment, you should always check to see what kind of rental income it’s going to be able to bring in. You don’t want to get stuck with a property that is going to have you breaking even every month.
Even if you start with a small rental property investment, you should still make sure that it’s able to help you turn a profit each month. Otherwise, your investment might cost you money instead of helping you earn it in the long run.
Hire a Property Manager to Look After Your Rental Property Investment
If you’re a handy person, you might be under the impression that you’ll be able to take care of anything that needs to be done to a rental property investment. But you’re going to be surprised to see how much of your time your tenants might take up if you’re constantly fixing things for them.
You should look for great property managers in your area and put them in charge of helping you to maintain your rental property investment. It’ll free up more of your time to focus on looking for your second rental property investment once you’re ready to do it.
Purchasing Your First Rental Property Investment Will Be So Exciting
If you play your cards right, you can turn your first rental property investment into a steady stream of rental income. It’ll give you the money that you’ll need to make other real estate investments and to get your investment portfolio as a whole growing like never before.
It’s all about making your first rental property investment a great one. Utilize what you’ve learned here to get out there and do it.
Get more great real estate investing advice by checking out the other informative articles on our blog.