A rental property purchase is not the same as a fix and flip project. With a fix and flip deal, you are focused on generating short term profits whereas a buy and hold rental may be in your portfolio for several years. It is essential that you know everything about your rental market, the property and all corresponding numbers prior to diving in. Just one oversight, in any of these areas, can completely change the perception of the property. The cash flow that you thought you were walking into can be quickly wiped away and you will regret your decision.
One quality rental property can instantly transform your portfolio, but you need to choose the right property. Here are five important things to consider for a successful rental property purchase.
Rental properties are a great way to find success in the real estate world. However, you must know exactly what you are getting into.