I've been interested in Real Estate since the mid 90s and have always wanted to begin a blog about real estate investing and property management.
With the advent of so many software solutions for property management, the industry has become saturated with solutions. In the beginnign I used Excel to manage my properties and moved on to much more advanced programs. Some industry experts believe that using Google Sheets or Quickbooks is the way to go but I disagree because these platforms are just too broad to support a specific group like real estate investors.
When you go to buy your first house, think about these things:
- What's your ROI? Be certain you have at least a 8% ROI on your property. Keep in mind all the following costs:
- Initial Repairs - this can be simple little things like a leaky pipe, or a new microwave. Also keep in mind the larger costs like a roof which might cost upwards of fifteen thousand dollars or a heating system which can be ten thousand.
- Future repairs - Every 10 years plan on re-painting the exterior. Every 20 years plan on replacing the roof.
- Maintenance - Landscaping and upkeep of the property are paramount.
- Who is going to manage the property? Are you going to manage the property yourself or are you going to hire a property manager. If you plan to do it yourself, plan on burning out in the future and needing a property manager. Most self-managed owners only do it for 5-10 years and they do finally hire a property manager. Property management costs can be 5-10% of the rental amounts. If you need to find a property management job visit listing sites to identify the best for your area. Be sure to look on Google reviews to get one with a good reputation.
- How is the local rental market? Be sure you are being realistic about your rental rates. Check Craigslist and other market indicators to make sure you are setting the price properly and remaining competitive in the market.