Ten Tips For Choosing The Best Rental Income Properties

IF YOU WANT TO MAKE MONEY BY RENTING—as many people seeking income real estate do—your best bet may be to buy multifamily units such as duplexes. You can live in one part while your tenants pay your mortgage. Or you can rent out both parts of the property and make more money.

BUYING A SINGLE-FAMILY HOUSE may not always be the safest choice. If your rental property sits vacant for a few months, you could lose a lot of money.

HERE ARE 10 THINGS YOU CAN DO to buy income property wisely:

1. Think like a business owner or business buyer instead of a home owner or home buyer.
2. Find out about the rental market for housing in the area where you're thinking of buying. Inspect the property and inquire with local government offices about laws regarding rental properties in the area.
3. Prepare to make improvements on the property. Think ahead. Build the costs and time into your plan. If you don't, getting a unit ready to rent could take much longer and be more costly than you expect.
4. Expect to pay more in points and interest for an income property than for a home you live in. Lenders consider a loan on income property to be riskier, so they charge higher interest and/or points.
5. Pre-screen tenants carefully. Don't rent to just anyone who'll give you a deposit. You might have potential renters fill out an application. You can check their credit, employment and rental history if you want to.
6. Stick by the rules you give your tenants. For example, if you say “No pets,” don't make exceptions. Don't invite trouble by letting tenants ignore rules.
7. Choose rental properties that are close to home. Don't spend your profits traveling to manage your property or paying for long-distance repairs.
8. Don't be afraid to make a low-ball offer to the seller. Remember, you must think like a business owner.
9. Look at “competitors” near the property you're investigating. Do they have lower rents, vacancies or amenities like washers and dryers in the units?
10. Insure yourself and your property, not only against fires and hurricanes. You also need to protect yourself against potential law suits from tenants, guests, repair people and other visitors.
    FOLLOW THE GUIDELINES ABOVE to make smart real estate buying decisions for  better rental income.
    
    For more real estate tips and methods, visit the International Wealth Success Official Website.