When it comes to buying rental property there are 3 main things you need to consider.
First you need to be sure that the property you want to buy will make you money each month above and beyond expenses. Second, you want to consider the overall condition of the property. Third you want to consider what type of tenants you can get to move into the property.
Buying rental property is really not that hard as long as you make sure to cover the important things. The first important thing to consider is whether or not the property will make you a profit each and every month. In order to figure this out you need to take into account what the payment of your mortgage will be, then include any other expenses. Examples of additional expenses would be taxes, insurance and maintenance. If you’re paying cash for the property then the mortgage will not matter but you still need to take into account how long the property will need to be rented to recoup your initial investment.
An example of what your number should look like:
TOTAL PROFIT $160
Although your numbers will be different than the example it’s important to have the same outcome, that outcome being that you make a profit.
Contact M Residential for further information Property Management, Selling and Buying in South Perth, Como and surrounds.