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Jul 28, 2016

7 Steps to Know When Buying a Family Rental Home

Single family rental homes are a fantastic excellent because there is always a market for this type of property. However, looking for a single family home that is going to be a rental property comes with a unique set of challenges. You will want to find a property with timeless appeal that is going to be easy for you to manage. Follow these steps to find a rental home for a single family that will suit your needs.

1. Determine Your Budget

The absolute first thing that you must do is take a good hard look at your finances. Not only do you need to make sure that you have enough to buy the house in the first place, but you also need to make sure that you will have enough money to pay for expenses such as repairs, insurance, HOA fees, and taxes. It may be helpful to speak to an account or a real estate investor such as David Giunta to make sure that buying a rental house is a good financial investment for you.

2. Research Your Area

You need to be very knowledgeable about the pros and cons of each individual area in your city. David Giunta explains that you may get a higher profit in some areas, even if the overall cost of a rental house is higher. Start looking for up and coming neighborhoods that will attract single families to find a great rental investment.

3. Don’t Forget Financing

A lot of first time rental home buyers make the mistake of not looking for financing until they have found the perfect house. This can be a big problem because the seller may end up going with another buyer if it takes you too long to get a loan or collect your finances. Try to already have your financing sorted out before you make an offer on a house.

4. Get Insider Information

It might be possible to buy a rental home by yourself, but the help of a talented local real estate agent is highly recommended. They tend to get the best leads on new properties that are just being put onto the market. The experience and industry connections of an agent can ensure that you get the best price possible.

5. Negotiate on your Offer

Many first time buyers are timid about attempting to negotiate the price, and this can end up costing the buyer a lot of extra money. Most sellers are willing to be flexible and will not be offended by you making an offer that is slightly lower than their asking price.

6. Finish Closing

This step might seem simple, but it is actually surprisingly complex. Of course having a real estate agent will make the process easier, but there is still all sorts of bureaucracy and closing fees to deal with. However, this step is very exciting because you are finally getting close to reaching your goal of owning a single family rental home.

7. Get Ready to Rent

Once you have closed on the house and made any necessary repairs, you are ready to start the process of renting out your house. Talk to David Giunta or another real estate investor expert to decide whether hiring a property manager or doing everything yourself is the best choice for you.

Ultimately, it might take a bit of time to find the perfect single family rental home, but the wait is definitely worth it. Instead of settling on the first tolerable property, find one that meets every item on your checklist. Once the hard part of finding the ideal rental home is out of the way, it will be faster and easier to find interested clients for your quality rental property.