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Rainmaker
1,052,321
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

If you've never been a landlord, you may need to start there.

Is there competent property management? NOT easy to come by. Find out.
Will you self-manage? If so, do you have decent accounting software?
Market rents. What areas, properties (and property types) will allow you to raise rents over time?  Do you know your desired yield and how to obtain it?
ARE THERE decent vendors for property maintenance, repairs, etc?
Legal resources for evictions or forming an LLC for the property?
Talk with your CPA/tax person about the financial implications.
Location.
Costs in addition to mortgage payment--assessments, HOA, insurance etc. (back to yield)
Do you have the intestinal fortitute to be a landlord? Not all do. (I hate it and have to be 'arm's length')
And appreciation, depreciation, cash flow . . .
These are a few of my favorite things . . .  3:)

Jan 05, 2017 04:42 PM
Ambassador
5,230,164
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Well, Candice A. Donofrio nailed this one!

Jan 05, 2017 04:43 PM
Rainmaker
1,503,048
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Candice A. Donofrio has your answer!

For me, I look at what I could get for it, what my monthly mortgage would be, if there are any HOA dues and what the insurance, maintenance and taxes would be.  I get a monthly amount for all of those and add it to my mortgage payment.  If the profit is there and at a level that meets my minimum requirements, I'm happy and purchase the property.

Jan 06, 2017 10:39 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio nailed this one!

Jan 06, 2017 04:56 AM
Ambassador
2,684,209
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

I yield to Candice A. Donofrio 

Jan 05, 2017 06:31 PM
Ambassador
5,049,488
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think you should pay close attention to Candice A. Donofrio . ROI is certainly an important consideration.

Jan 05, 2017 05:30 PM
Rainmaker
1,153,794
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

So many questions to answer before taking up the prospect. Will you be managing the property? Can you cover expenses if it takes a while to find a tenant? A six month reserve is recommended.  This is a business, can you treat it as such? Who pays what in regard to maintenance and utilities? These can be killers. Will you be able to fully benefit from the tax advantages? Being a landlord invariably can consume your time. Do you have the flexibility to respond to tenant's needs quickly?

Management fees can exceed 18% of gross rent if you are seeking are more "hands off" ownership. Even with that there's always incidental expenses that pop up. Are you ready?   

Jan 05, 2017 04:52 PM
Rainmaker
5,868,699
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

The fees involved, location and a great tenant.

Jan 07, 2017 11:48 AM
Rainmaker
864,658
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

The draws of the community. In our area, a downstairs bedroom with bath is an essential feature for a lot of relocating families.

Jan 06, 2017 07:30 AM
Rainmaker
5,217,433
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Get a home inspection! Understand useful life of roof, HVAC and apppliances. Determine the rental market and vacancy factors! Are you handy? Can you handle the stress tenants can create! Do you have reserves if you have to evict and the money for an attorney?

Still thinking about it! You can be successful!

Jan 06, 2017 06:00 AM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Do you have experience as a  landlord and repair person? If not hire a property mgmt co.

There are many, many issues to investigate before buying rental property.

I've owned rentals for over 20 years, it's no small task or decision

Jan 06, 2017 05:48 AM
Rainmaker
1,617,916
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

great location, near schools and decent appreciation. I can rent these ones all day long

Jan 06, 2017 05:42 AM
Ambassador
2,436,470
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

You already received a ton of good suggestions here. A lot goes into purchasing property as an investment.

Jan 06, 2017 04:33 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Candice has a good answer.

Jan 06, 2017 04:21 AM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I don't think I understand the question...

Jan 05, 2017 08:52 PM
Rainmaker
599,274
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

There are a thousand things to consider. How strong is the rental market? What class of neighborhood is it in? Is this a turn-key property or will it require some upgrades first? Is it a new home that wil require little maintenance or is it an older home that will require a lot of maintenance over the years? What is your rate of return? Cash-on-cash? Capex? Equity growth? Will you manage it or hire someone? If hiring someone, do you already have a capable manager picked out?

I could go on all day. If you are serious about starting out, I recommend you visit www.biggerpockets.com and network with thousands of investors around the country. You may even find someone in your local area that can help you with this deal.

Jan 05, 2017 08:13 PM
Rainmaker
7,836,648
Roy Kelley
Retired - Gaithersburg, MD

Know your market.

Jan 05, 2017 07:05 PM
Rainer
1,765
Ann Luckett
Kauai Real Estate Group - Princeville, HI
Residential, especially buyers from the mainland

Here on Kauai this is a common transaction.  Princevillet is a resort community and most investors want a place that they can enjoy for vacations and rent out the rest of the year. Location, location, location...everyone wants an ocean view.  There aren't nearly enough to satisfy the demand and those properties that do have the view are priced considerably higher than an equivalent unit without the view.  Mountain views (which we also have) are lovely too, but don't command the same price. 

The choice of a quality property management team is essential.  A great property manager markets the unit well so it is rented out a high percentage of the year. Also, the owner needs to know that his property is beautifully presented to every guest and that someone is there to immediately respond to the visitors' needs.

Of course, furnishing the property in an appealing and comfortable way is essential.  Here we are a beach community, so stocking the rental with lots of beach goodies (boogie boards, beach chairs, umbrellas, beach towels, etc.) can make a big difference in the visitors perception of their experience.

This has addressed short-term vacation rentals which is what we deal with here.  Hope it has been helpful.

Jan 05, 2017 06:14 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

It depends on the particular buyer.

Jan 05, 2017 06:00 PM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I could write a book on this.

  • Who is your target tenant?
  • What do they want?
  • Where do they want it?
  • What are they willing to pay?
  • What will it cost to buy this and run it?

and so much more.

Jan 05, 2017 05:39 PM
Rainmaker
2,224,473
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

You will want to look at your return on investment. Will you be able to cover repairs yourself, or will you need to hire someone? Really there are so many questions that need to be considered. 

Jan 05, 2017 04:57 PM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The ROI (Return on Investment).

Jan 05, 2017 04:45 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Return on investment, cap rate, cash on cash, internal rate of return.

Jan 05, 2017 04:05 PM
Rainmaker
900,278
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

You have to do the math.

Jan 05, 2017 03:24 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Steve Oatmangold - obvious answer should be - Location.

Jan 05, 2017 02:59 PM
Rainmaker
679,404
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Location, Location, Location!

Jan 05, 2017 02:48 PM
Rainmaker
711,852
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

What is the ROI? Does it make financial sense?

Jan 05, 2017 02:27 PM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I think you not only need to look at the potential income, but expenses. Not just the mortgage, taxes and insuramce, but maintenance, short term, long term, landscaping etc. The condition of the property will affect how much it costs to maintain it

Jan 05, 2017 01:55 PM
Rainmaker
764,033
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

1- Is renting allowed

2- Will the property be easy to lease

3- Will the cash flow be sufficient

4- Will the value of the property rise

5- Am I capable of being a landlord

Jan 05, 2017 01:52 PM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Steve,

I agree with Barbara Todaro .  Definitely talk to your accountant, and go over the numbers.  A

Jan 05, 2017 01:38 PM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

location and is it easy to rent out to? Does it pay for the mortgage?

Jan 05, 2017 01:30 PM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Steve Oatmangold ROI

Jan 05, 2017 01:16 PM
Ambassador
3,345,257
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Know the numbers ... know what you want for an ROI ... and make an informed decision about the purchase. 

Jan 05, 2017 01:11 PM
Rainmaker
2,781,313
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Check to see what rents are. Buy what is in demand and then rent it.

Jan 05, 2017 12:46 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

know the numbers .... sit with an accountant and have your accountant explain the advantages and disadvantages....

Jan 05, 2017 12:40 PM