52 Simple Ways to Manage Your Money – 39. Who? Me? A Landlord? – Income Real Estate
What it is …
Real estate purchased with the intention of providing cash flow through rentals and potential appreciation upon sale.
How it helps…
Provides additional income.
May offer some tax advantages.
Offers potential returns higher than the rate of inflation.
Key items to look for…
Your interest in managing property.
Your ability to own income real estate and still diversify your interests.
A long time frame, if necessary.
Your ability to cover payments if the property remains unrented.
Your ability to make repairs.
Time…
An ongoing process.
Keys to action …
Review your goals and objectives.
Determine the amount that you have available to invest.
Determine your participation level.
Select a real estate professional with whom you can work.
If you find a property, review the data with your accountant.
Determine a minimum length of time to hold property.
SET IT UP
Does this type of investment meet your goals?
STEP ON IT
Do you have the money, time, and expertise to treat this like a business?
STEP ON IT +
Do you see this as a long-term investment?
Notice…
Your reaction to investing in real estate.
Your willingness to work with tenants and make repairs.
But what if…
The value of rhe real estate goes down ?
- Make sure that you are adequately diversified and that you have contingency funds before you invest.
Thought primers…
The good thing about owning real estate...
If things don’t go according to my plan…
If the value remains flat or decreases…
To me, being a landlord means…
If it turns out that I could lose money in real estate…
If I had to sell, I…
