What should you know and ask before buying your first rental property? Golden Sky Management

 

Residential & Multi-Family Management Indiana

From single family residences to apartment buildings with countless units, our experienced team will put your mind at ease so you can collect rental income worry-free.

Before you invest in your first property, you should probably at least be aware of these things:

1. Even in investment properties there is a big difference between the retail price and the wholesale price. Because you are a new investor, you are likely going to purchase a property at the full retail price, or close to it. Because of that, it will likely be years before you break even, and then another year or two before you actually start to show a small profit, if you are fortunate. If you educate yourself about buying wholesale properties, you can start making money immediately.

 

2. Location is everything. Buy a crap house in a great location and you have a winner. Buy a beautiful house in a poor location and you will likely regret the entire experience.

 

3. If you plan to just have one property, you can probably manage the property yourself. If you plan to scale and expand into multiple properties, you may want to strongly consider looking into hiring a property management company.

 

4. For most people doing the actualphysical work on your rental property can suck the life out of your personal and family time. From day one, hire the work to be done by others and enjoy your free time. You will enjoy your property a lot more too.

 

5. There are two kinds of contractors. Professional and cheap. The cheap one is likely going to cost you a LOT more in the long run. You may get lucky on a few small repairs, but for anything big, you are going to want to hire a true professional. If you do the work yourself, you'll eventually get to hire the professional to fix your mistakes... and that gets even more expensive.

 

Thinking about answers to this question, there is enough to know before buying your first property, that I'm sure there have been many books written about this topic. Don't be afraid, do your due diligence and find a great property to invest in. You're going to be fine. If the first one doesn't work out exactly right, fix it up, sell it, and get another one. Properties are everywhere.

 

Retail & Commercial Management

Professional management is key to long term real estate profits. We offer the full range of management services from rentcollection, contract negotiation and renewal, through ongoing upkeep and preventive maintenance.