As a first time investor, purchasing a rental property as an addition to your portfolio, may seem

complicated or perhaps even a little scary at first glance. However, there is no reason to feel

overwhelmed. Today’s real estate market is strong and buying rental property is a strategic and

fairly safe way to invest your money.

By following a few of these tips for 1st time property investors, as outlined here in this article,

you will be pleasantly surprised to find out how manageable this undertaking can be.

Buy Property Specifically To Market As A Rental

Cash flow is always a good thing. When looking at a property to potentially purchase in order to

turn around and lease out, make sure that the monthly rent payment coming in will be greater

than what the property is costing you.

It would be beneficial for you to speak with others already familiar with the local market to

research what kind of rents the area can currently demand. Individuals to inquire with are

property managers, real estate agents, brokers, or others in the community who also own

investment properties in the vicinity. You could also do your own research online. Visit websites

such as Zillow.com or Apartments.com and search the local area for rental properties similar to

the one you are considering acquiring. The rent prices listed on these websites will give you a

good generalized understanding of what the current market will support.

Choose A Growing Market

Location, location, location…

Research local real estate markets trends and make sure you are purchasing a property in a

high growth market. While it is never fool-proof, more often than not, analysis can predict which

markets will see the largest increases in market values. The influx of more people into the area,

along with the targeted demographic will certainly give you a better understanding of how your

investment property value will be doing a few years down the road.

Choose Single Family Homes

It’s much easier to get your footing when dealing with a single family dwelling. Condos, small

houses, or possibly even a duplex are great starting points to learn the ropes and not be

weighed down by the stress of the unknown. The costs associated with single family spaces are

also significantly lower than owning and managing a multi-family building.



Have Your Finances In Order

Before you make any offer on an investment property, make sure you have researched your

options. Decide first if you want to pay cash or if you will be financing. Talk with your bank about

mortgage rates and also check with your tax advisor to make sure which financing option is

most beneficial to your unique financial situation.

Decide Who Will Manage The Property

If you are just getting into the market, deciding whether you should hire a property manager or

not is a big one that you should give great consideration to. You may feel confident in your

abilities to self manage your property, but be ready to jump in right away! Every day that you do

not have a tenant occupying the space, is money lost. Marketing the rental unit will be the first

step as a new owner to begin the search for your new tenants.

If at any time during the process of marketing you begin to feel overwhelmed, you can always

reach out to a reputable property management company in the area to take over from there.

Will The Property be A Vacation Rental

How you use the property is another significant factor in the decision making process. You may

already have an idea of this when you first thought about buying, but knowing the type of

prospective tenant you will have, is going to impact the type of property you are purchasing. Will

you be renting our unit to people on vacation and in town for a week at a time? Or are you

looking for a long term tenant who will stay for a year at a time. This will also be a large deciding

factor in if you may need to engage the help of a property management company.

Consider The Neighborhood

Many renters are drawn to the local area by the amenities and attractions which are available to

them. Popular neighborhoods often hover around restaurants and shopping centers that are

within walking distance or a short drive by car. If you are purchasing a rental in an area that

attracts many tourists each year, being close to the attractions of the town will be a selling point.

Most people on vacation want to be in the vicinity of the things they will want to be doing while

they are enjoying their stay.

There are a lot of factors to consider, however if evaluated one by one, none of them are

overwhelming enough to keep you from pursuing your goal of investing in a rental property.

Let  a professional property management company have the opportunity to tell you about how they can make your first

time investing in a Branson, Missouri rental property a little easier.