Reducing Risk in Rental Properties ASSESSING BUDGET, LOCATION, AND MORE WHEN INVESTING IN RENTALS
By Daniela Andreevska
here is always some risk associated with buying a property for the sole purpose of renting it out,
down your search for real estate listings only to those within your price range. Many real estate investors, especially beginners, make the mistake of going over their budget because they get emotionally attached to a house. Exceeding your budget puts you at risk of a foreclosure. The safest way to avoid this risk is to focus exclusively on rental properties for sale that you can afford. Throughout the process of buying an investment property, remember that this is just a business, so you should act rationally rather than emotionally.
whether on a monthly or a daily basis. But regardless of rental timelines, here is a checklist to follow that will help reduce your real estate investment risks.
BUDGET RATIONALLY The first step in the process of buying a rental property is setting up a budget. Based on your savings, income, recurring expenses, and expectations for the next few years, you should determine how much you can put down and how much you can spend on a monthly mortgage payment. Once you set up a budget, you should narrow
INVEST IN SIMPLE, INEXPENSIVE PROPERTIES While luxury real estate can be a very profitable
74 | think realty magazine :: june 2020
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