Buying a house and renting it out??

Question

I'm considering purchasing a house and renting it out since I have about 65k. However, I have NO idea where to start. I've read that buying a house is a great investment yet I know nothing about real estate. I'm a full time college student and would like to continue to be one, without needing to work. How do I get started???

Answer 1

Be very careful.
Have you done your homework to see if you can even qualify to buy?
Will you be able to keep it rented and will the rent cover your loan, taxes, insurance and upkeep?
Are you prepared to collect rents, screen tenants and manage repairs (or pay a property manager to do so)?

I've been there and being a landlord is not always fun. Think it through carefully.

Answer 2

What's most important is to find the market that best suits your goals, which may not be in your own backyard.

It's tricky buying out of state. You need to make certain you perform a great deal of due dilligence (if you are not engaging a company, that is.)

To thoroughly understand a market’s potential takes time and expertise. There are a number of factors to be considered to determine the future economic viability of a market, including:
• Population growth – short term and trends
• An upward trend in job growth
• The presence of large, sound, industry-diverse corporations (Fortune 500 in particular)
• Future plans for additional corporate entities
• Availability of State and Local government jobs
• The presence of cultural activities – music, art and nightlife
• Leisure interest and recreational activities, such as golf, hiking and athletics
• The development of retail outlets and restaurants
• The quality of local school systems
• The natural path of growth within the metro
• Social and political issues that impact supply and demand, i.e. urban growth boundaries

At my company we like Austin, Atlanta, Portland, Raleigh and Albuquerque.

I'm in California and have bought investment property in Austin, Atlanta and Albuquerque in the last year. I'm seeing good appreciation and my quality of rentals and rents have been strong.

Hope that helps!

My company is GoToNorthPoint.com

Answer 3

It isn't that simple and you are responsible to your tenants. Be sure you have a big nest egg to take care of problems. . .and there are always problems. Be sure you have enough to tide you over if your tenants tear up your house and move out with no forwarding address. You are on call 24/7. I have found that rental property does not give you an income but rather only equity and I can shelter part of my income. I have a duplex and that's where I stand. You will have less rental income per investment. What I learned was that it is better to have 4 rental units per investment. That way you have one to pay the insurance and taxes, one to pay for repairs and upkeep, one for profit and one for yourself. Do a lot of figures and planning to be sure it is in your best interest. There are a lot of tax breaks on rental property you might want to look into. Rental property is a good investment for those who can afford it, have lots of patience, and/or can do much of the work themselves.

Answer 4

i've got performed the two. Renting may be a good option reckoning on your life form and time-physique. oftentimes there are various regulations and quotes. in case you pay $500 in line with month it relatively is $6,000 by making use of the top of the year that has long gone to reinforce somebody else. You get no deductions to lessen your earnings tax criminal duty. on the constructive area you do no longer ought to pay the actual components tax nor replace the roof while it needs it. Or trouble approximately updating the valuables. additionally you have freedom to bypass away on the top of the hire. possessing is superb. even regardless of the undeniable fact which you're able to be able to desire to maintain the homestead you get interest and tax deductions meaning you pay much less earnings tax. additionally you have privateness and might do despite you like on your place like enjoying loud song. The storage is yours and don't ought to share with different tenants. comparable for the laundry room. your place is your fortress. A condo apt. is okay no remember if it relatively is momentary. homestead possession is the yank Dream by way of fact it has many reward. now may be the superb time to purchase by way of fact there is plenty to make a call from. costs are decrease and in case you seem puzzling you will stumble on a actual purchase.

Answer 5

If you can buy and own it without charging rent, then buy.

If you buy and have to rent it out to keep it, then don't buy it.

Countrywide2008