Benefit Of Investing In Real Estate With Current Tenants

12 Feb

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Are you hunting to get an investment house in the close to future? If so, then you should think about getting a house with current tenants already in it. The purpose I extremely recommend performing this is simply because the current tenants can do a lot for you that an empty house can not do quite however.

Purchasing any real estate will be a smart selection, however, one with current tenants will give you far more to appear forward to and far more to perform with. A lot of folks shy away from properties with tenants currently in them but this is one thing that must draw you towards the house as an alternative.

Investing In Genuine Estate With Tenants

Instant Money Flow – 1 of the advantages of getting a property with existing tenants in it is that you get instant money flow. When you have a home that is just sitting there with nobody in it, then that means you are paying for the fees as opposed to your renters. This is why I very recommend investing in real estate with existing tenants.

Know Recent Concerns – Did you know that at times the seller of a home won’t tell you specifically what is incorrect with it and that is why you want to speak with the tenants? This is a single of the very best parts about obtaining tenants in the house due to the fact they will tell you what is incorrect with the home and what the seller is attempting to steer clear of telling you.

Don’t Have To Find Tenants – The last factor is that you won’t have to find tenants, they are currently in the property. By not obtaining to find tenants you will be in a position to commit your time undertaking other things like fixing up the house or something else.

Investing in true estate that has existing tenants in the house is one of the smartest things that you can do. What I really suggest is that you take your time and discover a house that has tenants in it but never have a brand new lease. If you can locate tenants that have a brief quantity of time left, then that will give you instant money flow right now but it will also give you possibilities when it comes time for them to renew the lease.

Just hold in thoughts that investing in real estate is a sensible thing to do and if you have the solution to buy a property with tenants already in it, then I would very suggest going that route. Not only will this make your life less complicated, it will boost your profitability quite speedily.

9 Responses to “Benefit Of Investing In Real Estate With Current Tenants”

  1. Yolanda January 14, 2013 at 10:50 pm #

    I am interested to purchase Property in Malaysia, any guide or ideas to start an investment?

  2. Markus April 13, 2013 at 11:27 am #

    I have decided that I am going to buy a house in the US as rental property. I currently reside in Australia, but I am from Canada and will be moving back home in the final quarter of this year or the first quarter of next year. I want to start researching markets in the US to classify where I should be investing my money. The information I am looking for is what states are providing what kinda of marker. IE. Long term investment for buy and hold properties, short term fix er ups for buying and repairing, rental income for cash flow investments, ect…

    I am having trouble on finding a good source to provide this information. I obviously don’t expect a full site with detailed information down to prices, ect.. but I am looking for a good site to get me started, so I can narrow down to 5-8 states, and start doing real estate research on prices, areas, rental income, renovation costs, property managers, vacancy rates, ect.

    Any suggestions!?
    I suppose I should add more information as this is quite broad. I do understand that access to some sites would cost money, and I am comfortably paying fees to acquire information, however, this is my first dip into Real estate. To clarify that more, I don’t own a house myself, I just turned 22, and I have approximately $11,000 on hand for a down payment. I also have approx $5000 set aside for possible renovations. I do plan on getting a mortgage on this, however, currently I am before that stage, so I do not know the term and length of a mortgage (preferable to pay it off within 5-7 years, as I would like a second rental property by 30, as well as my own home).

    Of course I expect to do independent research, as I have already using a website called Altos real estate at the moment, to just give me an approx price on properties through locations in the US. I also have at least 6 months before I make a purchase, as I am in Australia and would not make the purchase until I return
    I should also add $50,000-$80,000 max price range. I obviously don’t have the highest amount of savings being 22, but I am willing to invest more for a higher return. My advantage of this is I am buying to hold a property for 20 years, so for the sake of $20,000, I would prefer a better location that can provide with more long term returns.

  3. Nan April 21, 2013 at 3:10 pm #

    I am 40 years old now and when I’m 55 or so years old, I wouuld like to have at least $2,000,000.00 + for retirement. I make around $100,000.00 + a year now.

  4. Odell June 13, 2013 at 8:06 pm #

    can purchasers try to rent property before settlement

  5. Zelda August 9, 2013 at 11:20 am #

    I want to invest in real estate with the 200k I have saved up. I was doing some research, and I came across this site that tells you this is how you can own 15 rent homes in 5 years:

    “The Five Year Plan

    Here’s how to buy 15 rent houses in 5 years:

    Year 1: Save $5k from employment to buy 1 house with a hard money loan. (1)
    Year 2: Save $5k and refinance $5k out of the 1st house to buy 2 houses. (3)
    Year 3: Save $5k, refinance $10k out of last year’s 2 houses, to buy 3. (6)
    Year 4: Save $5k, refinance $15k out of last year’s 3 houses, to buy 4. (10)
    Year 5: Save $5k, refinance $20k out of last year’s 4 houses, to buy 5. (15)

    This example only took $25,000 out of pocket over a 5 year period.”

    **Is this practical?

    If not, how can you own 15-30 rent homes over say, a 5-10 year period?

    And lastly, how would you budget 200k on your first rental purchase? Put down payments on 1-2 homes, or buy outright 1 home and start with that?

    Thanks for any insight.

    -DB

  6. Bert August 24, 2013 at 10:49 am #

    with Detroit bankrupt, and home prices in some areas of the city less then $100 would you say its a good investment? would i get screwed with back taxes? do you think the home value in the city will ever go up?

    I don’t ever plan on living in the house but just to hold onto it for 20 years or so to see if it is ever worth anything. As i said i am Canadian and i don’t know much about American real estate

    unrelated question – why are most the houses in Detroit all burned up as i am seeing on Google?

  7. Sal September 10, 2013 at 10:10 pm #

    Is this possible? Working and buying a house?
    I have a plan in the next 20 years for myself…
    My Plan:

    My plan is to buy a house without a mortgage.

    This plan is to save as much money humanly possible such as getting a room for 450 per month here in my cheap to live town, and live really really small. I have no wife or kids or gf. I plan on working 2 jobs while investing in either a fourplex or a duplex and saving for the next 10 years and putting my money in a bank with interest compounded in a GIC. In ten years after saving up around 22,000 dollars per year, I plan to buy a piece of land as big as affordable and putting down either a mobile home or a small house. I want this place to have Geothermal Heat, a micro hydro electric system, a well, and I want to grow my own food while I get income from my fourplex or duplex.. Living very small..

    Game Plan:

    I live in a small town where realestate is cheap. I calculated in 6.5 years I can buy the fourplex or duplex whichever I can get, then spend another 10 years working with the fourplex or duplex and live as small as possible and get a

    I calculated the interest in that time. in 6.5 years I would have the Fourplex, I would save 140 thousand, and in the next 10 years after I would save 350 thousand dollars. BTW these are just approximations.

    I JUST WANT TO KNOW IF THIS IS POSSIBLE…
    Thanks for taking the time to read..:)

    I hate mortgages and the way I see it is that if I was to get a mortgage on even a 100,000 dollar house, it would cost twice as much and by the time I owned the house, I could almost retire.. Why do people get Mortgages I find it stupid!!
    I know also that life is full of unexpected stuff .. sure I know..

    The way I see is that at least I still have money in my pocket.. If I need it in the future, such as to live.. I dont need to use welfare or anything have money when I need it badly. Lots of money… Acts as a security Net also to make sure I don’t become homeless..

  8. Terese September 18, 2013 at 9:50 pm #

    I am a young person (straight from college), interested in investing in some rental properties within the next few years. Because of my age and my limited income (about $50,000 a year), plus the TERRIBLE housing market in Detroit (where I live), I probably will not qualify for a loan of substantial amount, in order to buy a couple rental properties. So, I’ve decided to save up the majority of my money and, every few years, pay cash for a decent single family home that I can rent out to tenants. My goal is to, slowly but surely, acquire 5 or so QUALITY rental properties, via cash payments. (I know risk is involved in any type of investment; however, I really hate the thought of buying rental properties via mortgage loans, because of the potential that tenants might not pay, I might have to pay for damages while making my mortgage payments, etc. The thought of that just scares me, so I’d like to take a more conservative approach and just build my investments safely, over time.)

    The main problem is this: In about 10 years, I will be moving to Texas (for good), which means that I will have to sell my rental properties in Detroit (because I really don’t want to struggle collecting rent when I’m all the way across the country, and I also don’t want to lose 20% of my income by hiring a property manager). When I sell these properties in Detroit, I will be taxed on the difference of the selling price, minus the original purchase price, which leaves me with less money to invest in rental properties in Texas, plus less money for my OWN housing in Texas.

    My question is, if I know I am going to move to Texas in 10 years anyway, should I just buy my rental properties in Texas, right off the bat, even though I currently live in Michigan? It seems like it would be easier in the long run, because I wouldn’t have to buy, renovate, and sell properties as much. However, it would be very hard to collect rent and repair damages (without hiring a property manager) while I’m all the way across the country in Detroit.

    Has anyone here had experience collecting rent and dealing with maintenance issues on a rental property in another state? What are your suggestions?

    Also, if you have ANY advice, about ANYTHING in regards to real estate investments, please let me know.

    Thank you so much for reading and responding!

  9. Violet September 19, 2013 at 1:49 pm #

    I will be headed to Jamaica in January for a week (Ochos Rios) and was wondering what kind of business opportunities or real estate opportunities exist in that area that I might be interested in checking out.

    If there are any, with whom should I get in contact to get more information? What kind of hoops am I going to have to jump through in Jamaica to start/buy a business or buy real estate?

    Thanks.

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