If you have been going over whether or not you would like to purchase a house to rent out and make income off of, then you really have quite a few things you should be thinking about. This decision shouldn't be an easy one and if it is, then it may mean you haven't given it a proper amount of thought. Here are some things to go over before you totally decide to purchase your first income property:
Do you have spare money in your savings?
The last thing you want to do is to purchase a second home with the thought of turning it into income property and then find yourself drowning in debt while you keep up with the mortgage and are unable to rent it out right away. However, if you have the money to spare to keep the mortgage paid until you secure renters and it starts to make income, then you will be in a much better position to follow through with things.
Are you prepared for the emotional aspect?
When you own an income property for the first time there will be a lot of learning involved, as well as ups and downs. You will more than likely make plenty of mistakes along the way and you will do many things right. Before you decide to follow through with getting that first income property it is very important for you to make sure you are in a good place emotionally so you can roll with the punches and deal with problems without it affecting you more than it should.
Have you gathered resources?
Before you actually start renting anyplace out, you want to make sure you are ready to deal with anything that comes up. You want to have a good homeowner's policy in place so repairs can be taken care of without you running into financial problems. You also want to make sure you have called around and figured out who the best companies will be for you to turn to for problems like plumbing issues, roofing issues, electrical issues, landscaping needs, pest control issues and any other company that you may need to hire if your tenant has problems. It's extremely important to have the numbers of those who can come out 24/7, so you don't end up trying to look for one in the middle of the night when your tenant calls you up with an emergency that demands immediate attention.
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