Once you have decided that this might be an option, you should contact a local realtor in your area to find out what kind of property would best suit your needs. Some people prefer an apartment building (2+ units) and some prefer a single family residence. After deciding on which type of property you feel most comfortable with (they each have an advantage), ask your realtor to refer you to a property management company that is reliable. Set up an appointment and interview several to get a feel for what services they offer.
If you are thinking about investing in rental property... now is the time. In addition to purchasing a home for your primary residence, one should consider purchasing a rental property too. It is not as scary as it might seem.
Single family homes are nice because you have only one tenant to deal with. These tenants seem to have a sense of "pride of ownership" and may take better care of your property (although that is not always the case!). Multifamily units (2 or more units) can have more of a turnover, but when you do have a tenant move, the loss of rent is a fraction of what it would be on a single family home. Ask your property managerand Realtor what they have experienced in your area.
According to AXIOMetrics, an apartment market research firm in Dallas, said last year was one of the best periods for landlords over the past 15 years and may mark a turning point in the short term. With supply in demand, rental properties are a good investment.
You can manage the property yourself, if you feel comfortable doing so... keep in mind that you must know the local rental laws and codes in your area. If you prefer, you can hire a property management company and they will handle everything for you for a monthly fee.
I have had many, many years managing rental property for myself and others. It can be a very rewarding experience, if handled right. Other advantages include tax deductions and appreciation on the value of the property.
If you have any questions or think you would like to take the plunge... give me a call.
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