Growing Rental Properties

Anyone that owns rental properties has one simple problem to solve: Growing them. It’s a bug, and one that we at Easy Property Management understand all too well. We’ve seen clients grow their rental properties from as few as one to fully funding the incomes for their families, greatly increasing their net worth in doing so. In addition to providing homes for families across East Point, those with rental properties here strive to increase their financial gains, while advancing their holdings in the local community.

Creating an Empire

Starting Small

The first step to any empire, in any walk of life, is always a small one. For those looking to build an empire of rental properties, you have to start somewhere. If you don’t have a rental property yet, ask yourself what you can do to further that goal. Less than the advise you take, or strategies you lay forth, the thing that matters most in building your empire is getting started. Simply put: You have to pull the trigger. There are resources available to help you succeed with your venture, but you must recognize and seize upon the opportunity in order to take advantage of them.

Do Your Research

Rental property investors come from all walks of life, some deeply involved with the real estate industry already and others still with little but a dream for the changes that an empire of rental properties can bring about in their lives. In either case, it is crucial that you know and understand the difference between an owner-occupied and investor-owned property, for which there can be many. Additionally, ensure that each home you’re looking to purchase will have a demand to drive the rental value; this means ensuring the home is in a desirable area, at a price that allows for profit over payments, and can meet all governmental codes to allow for tenant living.

Vigilance & Patience

Owning rental properties requires equal parts vigilance and patience at every step of the process. When you’re first looking for a rental property to purchase, you must remain vigilant to all opportunities, but also patiently await the right opportunity. Once purchased, you must remain vigilant in safeguarding your property with high-quality tenants, while also staying patient as costs come up and profits trickle in. Finally, as your empire grows, you must always remain vigilant to seizing new opportunities for investment or abandonment of a project, while also remaining patient for the income you’ve received to offset all the costs you incur along the way.

Get Help

When you’re talking about owning and purchasing numerous rental properties, managing them can easily become more than a full-time job. Don’t bog yourself down with day-to-day operations, which can easily frustrate and distract you from the role you play as investor and visionary. For those just starting, managing properties can easily get you into legal troubles or cause you to miss time from any other work you may be doing to support your family. In either case, it is best to partner with a professional property management company to manage and maintain your rental properties, keep a steady stream of tenants within them, while ultimately increasing profits and decreasing stress.

Contact Easy Property Management for help with managing your East Point rental properties today.

Reconsidering Renting

We have been conditioned to believe that homeownership is a necessary step on the path to wealth, happiness, and success in modern American life. Is this really true, though? Home ownership carries a large amount of risk and upfront cost and has been shown to be less of a sure-thing investment than was previously believed. We live in a time just after the largest domestic housing market crash in history, leaving many wondering if the cons of homeownership may be larger than historically believed. If you are considering ownership as a future investment for your family, be sure to check out some well-known pros enjoyed by long-term renters:

dreamstime_xxl_20846331Houses Aren’t Rare

Most homeowners will tell you that the tough part is affording the home and down payment, not finding a home to buy. The fact of the matter is that homes are not uncommon; in fact, there are plenty to choose from. When looking to invest in anything, it is typically not advised to invest in something that is widely and readily available, yet we are told over and over that home ownership is crucial to prevent “throwing away money” on rental homes.

Numbers Don’t Lie

We commonly hear that to rent is to “throw away money,” and that the key to building wealth lies in the equity gained through home ownership. Yet, when we look at the numbers, it doesn’t seem quite so cut and dry. Not only is renting often much less expensive than home ownership after taxes, expenses, and maintenance are factored in, but homeowners are actually earning less in equity than they imagine they will. For instance, if you borrow 200,000 dollars at four percent interest on a 30 year mortgage, an average loan and interest amount, you will pay the bank over 134,000 dollars in interest alone over the course of your payments. It is unlikely that your home will gain 134,000 dollars in value over any maintenance and further investment costs, making it a pretty poor investment in terms of equity gained.

dreamstime_xxl_15308313On Down Payments

Worse still, someone considering a switch from renting to homeownership is advised to save up 20% of a home’s value for a down payment. In the above 200,000 dollar home, that would mean saving 40,000 dollars. For most Americans, this is a huge sum of money that should be spent wisely. Consider instead that you could invest that 40,000 dollars into an asset that will appreciate, and suddenly the thought of losing money in interest payments doesn’t seem quite so reassuring.

Invest Your Way

Any investment you can drive or live in is probably not going to bear you any sort of positive return. If you are looking to build your wealth for the future, consider a rental paired with smart investments in an asset that will not appreciate or cost you time and money to enjoy. Check out our available East Point rental properties, and keep your money working for you.