As I sit at my desk this morning, reviewing a notice of foreclosure sale of a property owned by investor I know. I am always amazed at how people buy investment property under funded for the “after” the purchase process. You see the real fun begins when it is time to get a tenant in the property and the ongoing day to day issues in owning and managing your rental property for profit!
It is so important to have enough reserves to help weather stormy financial issues when owning rental property. There will be stormy waters, and you will have a much easier time of it if you have proper reserves.
If you are not sure how much you need, then make sure you talk to other investors and/or your real estate professionals or property management company representitives to get an idea of vacancy rates in the area, maintenance issues, capital improvements, etc.
Join a great real estate investment club. Here in the Seattle area we have REAPS, which is an amazing resource for new and seasoned investors alike to network and learn from each other, as well as regular seminars and boot camps from top real estate educators from all over the country. These groups will be a vital part of your investing career success!
So go out and grow your portfolio and make great returns for the long term. Get the education and the information you need to be wise. In these times real estate can provide an amazing ROI for investment capital. Just make sure you have yourself positioned for maximum success!
To Your Success,