Investment of smart rental property - Method of making them (part 2)

As mentioned in Part 1 of this article, "Smart rental property investment - how to make them and investing in the rental property is now quite different compared to just a few years ago. for.

Continue and complete the list of recommendations from Part 1 that will help you make careful rental real estate investments on that promise.

• I know your neighborhood: What is the population statistics of the area where your forecast real estate is? This includes the average age and income of residents, educational standards, etc. This will provide information on the population of general tenants in the area. You also need to know the situation in the neighborhood and declare it is improving. If you find that it is declining, please do not walk from the property! No matter how promising investment your seller will tell you that property it is not worth risking your hard earned money.
• Please do "homework" beforehand: Before you get involved in purchasing a rental property, first learn basic basic rules of business. This includes mastery of landlord - tenant law, understanding of your rights and responsibilities as landlord / property owner, recognition of tenant's rights and responsibilities, development of basic repair and maintenance skills.
• Hire qualified real estate lawyers: Representing a real estate attorney during a sales transaction can avoid potential problems. Hiring a lawyer is easier to hire a lawyer "in trouble" than hiring a person who "is troubled". Hiring a knowledgeable lawyer (a lawyer you can handle comfortably) is probably a wonderful "insurance contract" to protect the biggest financial transactions that have never happened before.
• Get proof of real estate cost: Do not rely on the words of the seller (or seller's agent) on the cost of the real estate. Instead, please play it securely - please get a copy of the actual invoice and invoice and check the operating expenses of the property. The seller may overestimate rental income by underestimating expenses if trying to legitimately justify an increase in the selling price of property.
• Get information on tenants: As a buyer, you have the right to obtain rental information on property tenants. This includes information on rental contracts or leases paid to the current owner, and deposit and prepayment rents. This information can be obtained by mailing "estoppel" to the tenant.
• Hire a reputable property inspector: A good inspector determines the overall condition of the property and discloses the defects or problems that need repair or replacement. The cost of necessary repair and replacement work will be substantial. It is usually deducted from the selling price or negotiated with the seller.
• Establish "long-term" investment prospects: Patience is value, if you develop this characteristic, you can get a handsome reward in the future. The last pot of a rainbow is waiting for you! Late steadily win the race. There is no worry of being left in the cold, resisting the temptation of "getting wealthy people"!

In short, the road to the success of rental real estate investment can present many twists and turns on the way. By incorporating the above investment recommendation, we can reduce the risk more smoothly.