Have you considered becoming a landlord?  If you’ve weighed the demands associated with rental ownership, and believe it is a wise decision for you, then the fall season is a great time to buy. The first, and most important step, is to team up with an experienced real estate agent.

Because rental investments can greatly vary, it is essential to know the options before purchasing rental property. Single family dwellings, condominiums, townhouses, apartment complexes, multiplexes and commercial investments are among the possibilities. So initially be sure to plan a strategy that contemplates your available money and the amount of work you are willing to tackle. For the first-time real estate landlord/investor, residential housing or single family dwellings are highly recommended because they more easily allow potential landlords to “get their feet wet”.

When renting your investment is the ultimate objective, favorable property location should be a primary goal.  Ask your real estate agent, help you find the best neighborhoods on which to focus your search.  More densely populated areas where there is strong rental demand and rental prices are high are certainly superior to rural areas with much smaller pools of potential tenants. Other location factors to evaluate include the numbers of bedrooms and baths being sought by prospective lessees, the safety of the area overall and proximity to conveniences such as schools, grocers, public transportation, hospitals, and shopping. Properties that match the demand in an area and have the benefit of nearby services will be both easier to rent at top dollar and easier to sell in the future should you eventually choose that path. 

Unless you plan to pay cash for your investment property, be sure to consult a lender and secure capital before embarking on an investment property search.  A financial planner, or lender, can assess whether you have enough assets to handle the fluctuations in cash flow that inevitably accompany property investing. Additionally, it is advisable to consulting a property management service that can assist you in maintaining your investment unless you are prepared for midnight calls to handle emergencies and repairs.

Lastly, establish connections with a trusted attorney and accountant. An attorney can prepare or review leasing agreements and manage legal issues that may arise between landlord and tenant.  An accountant will provide helpful information about tax incentives and the associated financial ramifications of investing.  By having a well-rounded support team, headaches should be minimized and profits maximized.  

For a successful venture, first consult your real estate agent team member to assist in locating the most suitable property, in the most ideal location, with the best profit potential. Contact me today for a consultation. I will be happy to answer any questions you may have, and help you find an ideal investment property.

Allyson Hoffman, ABR, ACRE, CDPE, CRS, e-PRO, GRI, SFR, SRES
RE/MAX Villager
Serving Chicago's North Shore, North and Northwest Suburbs
[email protected]

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Allyson Hoffman is your ultimate real estate resource for Chicago's North Shore, North and Northwest Suburbs and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.   

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