A lot of people think they need to become wealthy before they can start investing in rental properties.
Yes, a real estate investment does require a good amount of money, but you don't need to purchase a home outright. Denver's housing market is in good shape, making it the perfect place to start as a real estate investor.
In today's post, we'll tell you how a small investment can get you started as a landlord in Denver. When you do your due diligence and perform a rental valuation, you can find a property that'll bring in more rental income. Please keep reading and learn how it's done.
Buying a Rental Property with a Small Investment
There are many ways to purchase a property. The most typical is to come up with a down payment and obtain a mortgage. You can put as little as 5% down to get a mortgage, although your monthly payments will be higher as a result.
Another way to own a rental property is to turn your primary residence into a rental. You can also get a home equity line of credit or partner with a co-borrower to get a more manageable mortgage.
Once you own the property and fill it with suitable tenants, you can quickly make your money back and turn your property into a moneymaker. First, you need to perform a rental valuation.
Performing a Rental Valuation
Rental valuations tell you how much you can charge monthly rent on a given property. You should always perform a rental valuation before purchasing a rental investment. Doing it right can tell you whether an investment will pay dividends or not.
Start by analyzing the local market by looking at other similar Denver properties and how much they charge for rent. You also need to look at the amenities that set your home apart from the competition.
Lastly, it's important to account for the rental income you need to make money on the property. It's common to charge 1% of the home value per month.
If you've got a $300,000 home, you'd charge $3,000 per month for the whole house. You can also break a single-family home into multiple units so you can lower rental prices.
Maximizing Your Rental Income
To maximize your rental income, you need to find great tenants. Start with a great marketing plan with a thorough property listing and professional-quality photographs. If need be, you can cast a wider net by investing in things like SEO and paid advertisements.
Once you get applicants, you need to screen them. Finding a great tenant will make it easier to operate your rental property. They'll protect the unit and pay rent on time each month, so perform background and credit checks to determine if a tenant is a good fit.
Hire Property Management
A small amount of money can get you a real estate investment that will change your life. If you need help maximizing your rental income, you can hire property management to help you.
At Laureate Ltd., we're the top property management company in Denver. We can help you perform a rental valuation on the property, maintain it, and find great tenants to live in it. Contact us today to learn more about what we do.
