First-time rental property owner? Consider these tips

Some people who want to take a shot at being a rental property owner are not aware of the considerations in purchasing and maintaining a property for business. While the idea of making money seems like a favorable sign to go for the purchase, there are a few things to consider before going full steam ahead.

Take emotions out of the equation. Great rental property owners don’t let their emotions get in the way of their decisions. To become successful in the industry, one must learn to focus on the business investment and make the most reasonable decisions regarding their business plan, explains real estate executive Eugene Bernshtam. Instead of listening to one’s heart when it comes to rental property woes, it’s best to first do research on the best practices and the kind of property that potential clients will love.

With pricing expressed by the seller, calculate possible expenses and profit. This will give one a good idea of how they will renovate, maintain, rent out the property. Once every financial consideration has been taken and made, one has to secure the down payment. At least 20% of the total price would be the down payment for an investment property.

According to Eugene Bernshtam, it’s incredibly important for a first-time rental property owner to find the right location. Skip areas that have decreasing rental numbers and prices. Areas with a good school district, low property taxes, parks, malls, cinemas, sports clubs, and restaurants are often the best ones for an investment property.

Eugene Bernshtam is the head of the real estate investment and development firm Avalon Holdings, LLC and its affiliated entities, which specialize in investment, development, and management of apartment buildings and mixed-use developments, repositioning underperforming real estate assets, and consulting services. For more updates, visit this blog.