Buying a property that can then be used for rentals

If you look at Dean Graziosi tips for investing, you will find that one of the things that he is most interested in is buying up property that can then be used for rentals. He believes that this is a great market because you can still get a mortgage for a relatively low monthly payment that could even be half of what you can get in rent out of the property – renters are willing to pay more because they are not then locked into a long-term deal, so they have more freedom while they do things like going to college. If you were paying only $600 a month for your mortgage and getting $1,200 a month in rent, you can see how easy it would be to pay the property off and start making pure profit, or to make a smaller profit while slowly paying the property off and essentially getting it for free in the end.

Are you interested in using this tactic that Mr. Graziosi has used in the past to make some money? Maybe you want to be your own boss and start your own career. You can do it if you have some money to invest, and you can use these tips to find a good property for your new business.

1. Find a hot rental district.
No matter what city you live in, there are going to be districts that have many renters and other districts with more family homes. You want to find a hot one where rental demands are high and then buy a property in that area so that you have a consistent pool of renters to pull from. These areas also tend to develop a reputation for being very renter friendly, so people are more likely to look there for a place to live.

2. Pick out your demographic first.
You need to know who you want to rent to so that you can find a property that will be attractive to them. For instance, you might live in a college town where there are a lot of students coming through each year. You need to get a house near the college, where they will want to live. If the property is within walking distance or along the bus route, it will be even more attractive since many of these students will not have cars.

3. Find homes with extra bedrooms.
Many college students want to live together with large groups of people. If this is your target demographic, you need a home with a lot bedrooms. You get the same rent, but it makes it more affordable for the students since they can split it more ways. Consider homes that have had their formal dining rooms – which college students never use anyway – converted into bedrooms, or buy homes and do those conversions yourself.

4. Look for homes that need little work.
The biggest challenge for you is going to be doing upkeep on the house while other people are living there. If possible, find homes that are built with materials that will need little work. This could include things like cement board siding or a metal roof. This makes it so that you do not have as many complaints and you can invest less money each year.