Home » Real Estate » Buying

Real Estate Investing 101: Purchasing Rentable Properties

Nov 25, 2007
Purchasing real estate with the intent of turning it into an apartment or a house for rent can be an excellent financial decision. When you buy a property with the intent of renting it, however, there are several factors you should take into consideration in order to guarantee the best chance of successfully finding a tenant and making money from your investment.

Assessing Your Goals Before Buying

Before you buy real estate with the intent of renting it out, you need to determine what your goals will be. For example, do you want to create a steady source of income for many years to come or are you looking to sell the real estate for a profit later? If you are looking for a property that you can sell for a profit later, you will want to purchase something that is inexpensive that you can fix up and sell later.

Determining If Your Real Estate Will Be Your Home As Well

When you get into the rental business, you will also need to decide whether or not you will live in the apartment building or housing unit that you purchase. If you do decide to live on that piece of real estate, you will probably be able to get your entire mortgage paid off by your tenants. As such, you will basically be living in your home for free. At the same time, you might prefer to distance yourself from your tenants. In this case, living in the same apartment building or housing unit may not be so desirable.

Choosing the Type of Real Estate You Will Buy

When deciding on the type of real estate you are going to buy, you will need to take some factors into consideration. For example, single-family houses are usually less expensive than apartment complexes since they are so much smaller. At the same time, a house will bring in less income than an apartment complex. Keep in mind that an apartment complex will often require more upkeep than a house as well. Take all of these factors into consideration when deciding on the type of real estate you plan to invest in.

Picking the Right Location for Your Investment

Obviously, when you buy real estate with the intention of renting it out, you want to find property that is desirable. Otherwise, you will have a difficult time finding someone willing to rent it out from you. Therefore, you should select real estate that is in an area where people want to live.

In order to determine if the property is in a good area, consider the available shopping and activities that are near to the property. You should also consider the schools and the crime rate as well as the general attractiveness of the neighborhood.

Unless you are looking for a fixer-upper and you have the time to fix up the home or apartment, you should look for a place that is in good shape. By purchasing a well maintained piece of property in a good location and within your budget, you will be certain to start a solid career as a landlord.
About the Author
Eric Bramlett is the broker & co-owner of One Source Realty in Austin, Texas. Eric currently manages his Lake Austin Real Estate Guide, his Austin real estate company's website, & his Austin Condos Guide.
Rating:
Please Rate:
(Average: Not rated)
Views: 108
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources