Buying rental properties for financial gain can be a great opportunity for individuals with a lot of fix it skills, and the people skills and patience to manage residents. However, you do need capital to provide for up-front maintenance or renovation costs and to cover vacant months.
The positives of real estate investing:
- Provides regular income and properties can “appreciate” – translation: grow in value over time, and…
- Maximizes capital through leverage – translation: using debt to acquire additional financial capital and…
- Real Estate investing offers many tax-deductible associated expenses – translation: tax breaks. Who doesn’t like that?
Some of the challenges of real estate investing include:
- Managing residents can be difficult at best. Collecting rent, completing repairs and managing evictions and legal processes is not easy.
- Residents don’t always love the property as much as you do. And, residents will cause damage, sometimes serious damage. Pets are just one threat to your investment property – and require careful paperwork to protect yourself.
- Vacancies are frustrating, though uncommon in today’s South Sound market. But they can be a reality. If repairs are necessary, a unit can lose rent income, which can hit your bottom line. We all know that the mortgage will always come due, whether rent comes in or not.
Ready to Go?
Are you feeling brave and ready to pursue your first investment property? We love helping people just entering the world of investment properties. And maybe you want to buy the properties and not manage them? That is what we do – we provide professional property management services to investment property owners. We can join you on a tour of a property you are considering purchasing, as a “get to know each other” meeting. We can even help out with funding source recommendations or a referral to our favorite CPA.
Call Safe Harbor Property Management, at 253-302-3079 or fill out this form to start a conversation.