Prepare for Surprise Rental Expenses
In today’s investment world, if you want income, interest rates are too low to generate a decent return. So let us consider an investment property in Omaha for income. To invest wisely, an investor considers real estate for income, but a good investor can prepare for surprise rental expenses.
An investment property is one purchased strictly to generate income. It’s neither your current primary residence nor a vacation home used only by your family. You would purchase an investment property with the intention of either renting it out or renovating it to resell at a profit.
Here are some of the benefits of investment property:
- Double the Profit Potential: An investment property offers two opportunities for financial gain: rent that can provide ongoing income, and appreciation that can result in a sizable profit when selling the property. There may also be tax advantages available, depending on your financial profile.
- Little or No Money Down: Unlike the stock market, you can enter the world of property investment with a relatively small amount of out-of-pocket money. Among your financing options, you’ll find loans requiring little or no money down, which is called leverage. There are even options that let you use the equity from your current home to purchase your investment property. That leaves your liquid cash assets available for other investment opportunities.
Prepare for surprise rental expenses
- Exterior Maintenance. You might not care what your properties look like if you aren’t living there but the city or homeowners association will. That means hefty fines and penalties if not maintained to code. You will attract more tenants and higher rents if you budget for exterior maintenance.
- So many investors forget to plan for big expenses like appliances. When appliances go bad, it can come as a big and nasty surprise right at the wrong moment. A good investor prepares with a reserve account should be set aside for and contributed to monthly. Some real estate investing pros have found investing in a home warranty plan the best move.
- Re-Leasing. Despite the best screening in the world things happen, and tenants leave, sometimes a lot sooner than planned. A good investor prepares for repairs and redecorating as well as marketing and sometimes commissions too.
More Ways to Prepare for Surprise Rental Expenses
- Professional Property Management. You may start off wanting to manage your rental properties. At some point, you may not have time to manage your properties. You may decide to hire a property manager. Make sure you have budgeted enough room to hire someone else later on.
- Taxes and Insurance. Plan for increasing taxes and insurance. Voters are always voting for bond measures to increase property taxes, and insurance costs inevitably rise.
- Legal Fees. You need a good attorney and good legal advice for owning rental property. Hiring a good attorney is far from cheap, so make sure to have some budget saved up specifically for this cause.
Styl Properties, Inc. is here to help homeowners out of any distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast to resolve any situation.
If you’d like to give us a ring, we would be more than happy to spend some time with you to help you understand the process and to get all of your questions answered. You can reach us at 402 999.0577.