The drop in real estate prices have made this time one of the best times to buy investment rental property. But if you don't know what you are doing, rental property can turn into your biggest nightmare. Here are some tips for investment rental property that can help you get started and keep you on track.
1. Get past the fear - lots of people fail to pull the trigger on investment rental property.
2. Get some knowledge - this goes a long way towards getting past the fear
3. Learn what type of property is the best one for you
4. Its all about location - don't buy property in a war zone - who will rent your property?
5. Start with something simple like buying single family houses
6. Learn how to finance investment property - there are dozens of creative real estate investing ideas to chose from
7. Save money for a downpayment - no money down real estate usually has negative cash flow
8. Clean up your credit record - a good credit score can lower your monthly payments significantly
9. Buy houses in the "starter homes" price range
10. Only buy houses from motivated sellers - you earn your money when you buy
11. Hire someone to do a home inspection until you have experience to do your own
12. Use a "subject to" clause in any contract you submit to a seller
13. Don't over improve a rental house
14. Use a lease-purchase strategy to get the best tenants and best rental income - if you make the tenants 'potential owners" you can even get them to do some maintenance
15. Always do a background check on potential tenants
16. Follow your lease to the letter. If you give tenants an inch they will take a mile
17. Keep accurate records of your income and expenses
These are just a few tips for investing in rental property. Like any profession, knowledge is power. Take time to study what successful real estate investors do. Join a real estate investment club and associate with people that are buying investment rental property.
Article Source: http://EzineArticles.com/?expert=Paul_Beauchemin
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