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If you’ve always wanted to invest in rental properties, there’s no better time than the present. The real-estate market is definitely geared towards the buyer with low prices and low interest rates. Although the numbers are dropping, the market is filled with foreclosures and short sales. And, rental prices are actually going up while home prices are going down. This is because the people that are losing their homes have to live somewhere.
When looking for a good investment property, check the records at your local courthouse. Some banks will provide a list of foreclosures, but many won’t. However, every foreclosure has to go through the court system. Many real-estate agents specialize in bank-owned properties, short sales, and other types of bargains. Ask around to find out who can find a real deal and give them a call. If you have the money or the credit to make a purchase, you might be surprised at just what you can find.
Once you have a rental property in your portfolio, make sure that it is in good repair before you advertise it for rent. Carefully review each application before choosing a tenant. To make this a profitable venture, you’ll want the rental relationship to last as long as possible. Look for renters who have a stable employment background and a good credit rating. It doesn’t hurt to ask if they’re planning on a long-term rental or if they’re planning on making a real-estate purchase of their own in the near future.
