Rental Property Investing Real Estate Strategies Made Simple, Investing, Passive Income And Creating Wealth

By Robert Anderson

This book will prepare you for all the expected and unexpected twists and turns of rental property investments. You will be equipped enough to get down to business and create a healthy and stable cash flow. More and more people are turning toward rental property investments as a monetary safety net for their future and retirement. Having a stable passive income gives you the freedom to do the things you love, and that's the kind of freedom we have helped you find.

  

Many times, you want to just quit your job and start afresh with something new, but passion does not pay bills, but a healthy source of passive income, on the other hand, does.  If you implement everything you will learn that you should have enough knowledge to get started on buying real estate properties that generate rental income.  

  

We have outlined all the information you could need to confidently speak to lenders, find properties that will offer the best value and how to stay in the driving seat at all times. From this point onward, you just need to stay on track and follow the footsteps of those who have successfully created thousands of dollars in positive cash flow through rental property investments.  

  

You have the information; you just need a plan now. Keep this book handy at all times and give each relevant chapter a read before you jump into the decision making process. The more you read through the information, the more sense it'll make. Know that each journey is different, and while this book has empowered you, it can only take you so far. You hold the reins to your success now… you just need to ride through it!

• Language: English
• Publisher: Robert Anderson
• Release date: Sep 23, 2019
• ISBN: 9781393239017

Robert Anderson

ROBERT ANDERSON is also the author of Little Fugue. He lives in New York City and teaches writing at the Nationwide Institute in Flushing, Queens.

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Introduction

In this book, you will learn everything there is to know about rental property investing. You will learn if rental property investing is a good option for you, the steps to buying your first property, different things you must consider while buying a rental property, how to analyze the property, raising funds to buy your first rental property, how to manage the property, and much more. Rental property investing is a great way to generate additional income or even passive income. Regardless of your reason for investing, you must understand all the different aspects involved in investing if you want to be profitable.

So, if you are ready to step into the world of rental property investing, let us get started without further ado!

Chapter 1: Why Rental Real Estate Investing?

Before we start discussing the various procedures you need to work through as you seek to make your first real estate investment in rental properties, the first thing we need to do is evaluate why you should venture into rental real estate investing in the first place (or real estate investing in general). 

Here Is Why Investing In Rental Real Estate Is the Best

It is highly probable that when you think of investing in real estate, the first thought that pops into your mind is that of owning your home. Yes, buying a home in which to live is a form of investing in real estate because you are actually buying a house.

However, if your intention is to create a real estate empire, one that is profitable enough to generate passive income month after month, you need to look beyond owning your own home; you need to look at how you can create a diversified property portfolio, which is where investing in rental real estate comes in.

The term rental real estate encompasses any real estate property you may purchase or own with the intent to generate income from it. Rental real estate can be in the form of single-family homes, apartment buildings, commercial real estate, residential properties, and all other forms of properties you may buy with the intent of earning an income from leasing out the property. 

Investing in rental real estate has a number of benefits that we cannot overlook. The most poignant of these benefits are as follows:

Control

When you invest in rental real estate or income generating real estate, you accrue a tangible asset that generates income one month after the other; this is assuming you have done your due diligence and bought an ideally situated rental property that attracts renters. This gives you more control in the following sense:

First, by owning rental real estate, you become your own boss and depending on the size of your real estate portfolio, you can quit your 9-5 job and take on the role of managing your rental real estate portfolio—you can even hire a firm to do that and simply just spend your time as you want.

The second level of control is that like most investment vehicles, rental real estate places you in the driver’s seat of your financial life. This in the sense that by choosing to venture into this business model, you are free to choose the rental properties you invest in depending on the kinds of tenants you would like to have and the amount of income you would like to generate from your rental properties. 

Leveraging

Investing in real estate in general but in rental real estate in particular is a great investment option because it allows you to use the principle of leverage to grow your real estate business and to ensure that your real estate properties appreciate. Here is what that means:

In most cases, when you are purchasing rental real estate, you will put up a small portion of the buying price, a down payment, and then borrow the rest from a financier such as a bank or any other lender with whom you have good credit; we call this leverage. Leverage has tons of benefits—as long as you do not over-leverage.

Take an example where you intend to buy a rental property worth $150,000 and out of this, you only have $50,000 and intend to borrow the rest. By leveraging the power of a financier, you can combine your equity with money loaned to you by your lender (bank, investor, etc.) and using that, purchase a real estate property you would have otherwise been unable to purchase using just your money. 

This is a great way to grow your real estate business because the value of the asset appreciates generally instead of just your tangible investment. In the example given above, if the real estate property you end up purchasing appreciates at a rate of 5% P.A., the growth rate will apply to the entire $150,000 and not just the $50,000 you put up. This very powerful tool can help you create and grow a rental real estate empire in a substantially short amount of time.

Rental Income

The aim behind investing in rental real estate is to generate passive income, an income that does not require a substantial amount of active input. Rental real estate does this fantastically. 

Rental properties earn income in the following sense: you take what your tenants pay you, you subtract expenses such as mortgage, maintenance, and repairs, and whatever remains is your passive income. Take an example where you own a rental property whose tenant pays $5000. Out of that, you pay a mortgage of $3000 and a monthly maintenance cost of $500. The remaining $1500 is essentially money going into your pocket—overlooking other factors such as vacancies and the likes. 

Diversification

Any well-informed investor will tell you that diversification is the secret to investing; the more you diversify your investment portfolio, the more you spread out your risk.

Investing in real estate is a great way to diversify your investment portfolio because in addition to being a proven income-generating investment vehicle, you can also diversify your rental holdings by buying rental properties in different markets, locations, targeted at different market segments, etc.

For instance,