Idiot’s Guides: Making Money with Rental Properties
Earlier this year I published a book on the entire scope of residential real estate investing from understanding what kind of investor you are to finding and renting the property.
What do people think? This is what Andrew Waite publisher of Personal Real Estate Investor Magazine had to say.
“Welcome to the opportunity to “get rich slowly and surely” by investing in rental properties.
Direct ownership of well-bought rental properties offer three opportunities; first to earn income, then to shield that income from taxes and finally to watch the asset grow in value. Simply income, tax advantages and long term asset appreciation.
Owning rental properties is less about real estate more about owning a business. In two words it is about cash flow.
But wait…..before you rush into this, maybe you have heard the “tenants, toilets and turnover” warnings.
The “wisest among us “have a wonderful habit of sagely talking us out of things they have not tried.
Earning income from renting residential property is one of the most common mistakes naysayers advise against. “Tenants, toilets, and turnover” are the most frequent reasons these sages cite as reasons not to invest in income real estate.
The truth is these “negatives have positives” and are exactly the reasons to invest in real estate:
Tenants as a source of income. This market rental income that goes to paying for the expenses of operating a rental property, but more importantly having these tenants pay for your investment. To assure uninterrupted cash flow recent product developments allow an investor to insure against an interruption to rental cash flow.
Toilets as a piece of physical property. Toilets a reflection of the fact this is an investment in real property that requires maintenance, but more importantly is an investment in a hard asset located in a unique physical location that can be recorded as a material asset in your name. The fact it is a capital asset means that it can be insured against loss unlike the Wall Street instruments. Like Wall Street paper, real estate has proven history of long-term appreciation.
Turnover as part of the process of matching your property with the best tenant. Turnover is a fact of life in rental investment. This should not be positioned as a negative unless someone is making poor tenant selection decisions, otherwise this is both good and better news. The good news is that using a professional property manager can completely shield an investor from the day-to-day issues and liability of managing tenants and rental property.
For a relatively small fee of less that 10% of the market rent the property manager takes most all of the professional and legal responsibility for the process of finding, screening, placing and managing tenants. The great news is that upon a change of tenant or a lease renewal anniversary, the annual rents can be increased and adjusted for inflation and changing demand. Tenant turnover can increase income turnover and all of this can be taken care of by a professional “for fee” manager. We don’t just recommend it we strongly advise it. You will sleep better.
Owning rental properties is mostly a slow way of getting rich. These a brief snapshot as to why the asset, ownership of rental property and association with trusted providers are an essential elements of a successful residential rental business.
Kimberley Smith is not just an expert in providing property management services. Kimberly is a strategic thinker and expert in leveraging profits out of general and specific property management strategies.
Read and enjoy, as this Idiots Guide will help you become a “rich idiot” by following the commonsense advice in this book.
God Bless and Great Investing”
Andrew Waite – Publisher
Personal Real Estate Investor Magazine
Thanks Andrew – Check it out.