Earn substantial income with the right investment strategy
Earning passive income on a sustainable basis, while you spend your time doing whatever makes you happy may sound like a dream, but with smart investments you can have a great chance at success.
Our friends at Dodson Property Management believe rental properties to be the best asset for building sustainable wealth through passive income.
Choose your investment strategy
The first step is to identify your preferred property investment strategy. There are a lot of different ways to become a real estate investor and you should choose the one that is best suited to your lifestyle, experience, and investment goals.
Broadly speaking, an investment property can be residential or commercial. But each of these two categories has layers of categories under them. Before you put your money into any property, look at the property investment pathways available to you and start with one.
Research locations
The most important factor in the success of an investment property is its location. The nicest property in a bad location will always underperform an average property in an excellent location.
Look for a large number of potential renters who are willing and able to lease the rental in the area. Some of the factors that determine the population of renters in any location are employment, amenities, infrastructure, and community.
Do the math
You must have a clear idea of how much money you can expect the rental property to generate as profit every month. To determine your projected monthly earnings, you should be able to calculate the rental income from the property and the monthly expenses.
Ideally, you want a property with minimal operational costs and a very high rental income. But sometimes this is not immediately possible. You may have to do some work on the property to reduce your monthly costs and boost your rental income.
Build a strong team
A team of competent professionals is a must for success. Understand that the value an attorney, tax accountant, professional handyman, or estate agent brings is not a cost but an investment. Let the experts do what they do best!
Get professional property management
It takes a lot of work to make an investment property successful. How can you separate your time and labor from an investment property’s ability to generate passive income for you? The simple answer is to get a professional property manager to operate the property.