Are you thinking of purchasing a rental property? If so, you’re not alone! Purchasing rental properties has become a popular endeavour due to the fun, flexible, and lucrative nature of this business venture. However, like anything, it’s important to have an in depth understanding of the process to ensure optimal success. One of the best ways to learn in the real estate realm is by learning from the professionals. Michael Andrew Lauchlan is one of those professionals.
As a leader in the real estate investment field, Michael Andrew Lauchlan has successfully built his business as a Las Vegas property investor. Michael Andrew Lauchlan has made it his mission to utilize his experience to teach those who are driven to be successful in the industry. So the question remains: when should you buy your first rental property? Michael Andrew Lauchlan shares his insights.
What should you know before purchasing a rental property?
It’s important to remember that the process of purchasing and managing a rental property is a marathon, not a sprint. You have to be ready for the long haul by ensuring that you can start strong and stay strong throughout the buying, renovating, and renting process.
How much should you have saved prior to buying your rental property?
While the logistics of this answer all depend upon your specific property, a good general answer would be to save more than you initially think! From renovations to maintenance, rental properties might mean spending more than you assume – before you even have a tenant! Look at it this way: if you’re wrong, you’ll have extra money in your pocket and if you’re right, you’re prepared! The good news is that when done right, these properties can become a great source of passive income.
Should I expect to devote most of my time to my first rental property?
You should definitely expect to devote a lot of time, resources, and energy on your first rental property. There’s a lot to do in the tangible sense and even more to learn. While it might be difficult to leave a primary job when you’re getting your feet off the ground with a rental property, it should be assumed that a great deal of your free time will be going to your project.
What were the biggest challenges for you when buying your first rental property?
I wanted to do everything at once, and that mentality simply isn’t feasible. As I’ve said before, this is a marathon, not a sprint. It’s important to consistently work hard, but to understand that your path to becoming a successful real estate investor is a journey. Enjoy everything that you’re doing and learning within that time!
What is one piece of advice to someone who is thinking of buying their first rental property?
Have fun! It’s easy to get lost in the hard work but remember that you’re doing something fun and to take time to appreciate all of your accomplishments – big and small!