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buying your first rental propertyOwning rental property can be a great investment and an excellent way to increase your personal wealth and monthly cash flow. However, purchasing your first rental property can be intimidating because it can be difficult to know where to start. In addition, buying a rental property is only the first step. Unless you have a great deal of time to invest in dealing with your rental, you may want to consider working with a property management company.

Here are 6 tips for buying your first rental property:

  1. Make a plan. You want to figure out what your goals are for the rental property you are about to purchase. Are you buying the first of hopefully many rental properties? Are you looking for a one-time investment? Are you purchasing a home for your future retirement? Are you looking for a multi-family dwelling or a single-family home? Knowing what you ultimately want to get out the rental property experience will help you stay focused on your goals.

  1. Get your finances in order and meet with a lender. It is important to know at the start what kind of budget you will have to spend on a rental property. While many people prefer to pay cash for rental properties, others prefer to go through a lender. Many lenders will require you to have a twenty percent down payment.

  1. Run the numbers. It is essential to figure in every possible to expense to make sure that you will have positive cash flow from the rental right from the beginning. Be sure to budget enough for things like repairs and renovations. Also work in a cushion in the event the property remains vacant for any period of time. Many experts recommend that you budget at least $100 per month for each small unit and $200 per month for each large unit.

  1. Look for a property in a desirable location. Properties in good locations tend to rent faster and stay rented.  Take the time to check out the crime statistics and the school districts for properties you are considering. Taking time to do a little extra research before you buy can prevent problems later on down the road.

  1. Try to find a property that has the amenities that renters want. By providing the amenities renters are looking for, you will be able to keep your property rented and also be able to charge more in rent.  Read 7 Features Renters Look for in a Property.

  1. Make it easy. Once you have purchased your rental property, save yourself time and energy by working with a quality property management company. A quality property management company will do everything from marketing the property and screening the tenants to collecting rent and meeting maintenance needs.

At Fort Lowell Realty and Property Management we have over 30 years of experience in helping our clients navigate the world of rental property ownership. With our excellent service and commitment to preserving the value of our clients’ investments, we make it easy to own rental property in the Tucson and Phoenix areas. If you own rental property and are looking for a top-notch property management company, contact Fort Lowell Realty and Property Management today.