Hampton & Hampton Management & Leasing...407-253-9324
   
  The Dos and Don'ts of Property Investing
   
 
  • Don’t use the 1% rule to determine rental amount. For example:  $150,000.00 property may not rent for $1,500.00 per month.
  • Don’t tell tenants they can cancel their lease if they purchase a home.
  • Do check HOA, rules & regulations in relation to mandatory leasing periods 7-12 months and does the resident have to be approved by the HOA. Also, get a copy of the rules & regulations to make it a part of your lease agreement.
  • Don’t become emotionally attached to the property, it is a business and should be treated as such.
  • Don’t rent to someone you know.
  • Don’t accept partial payments for rent.
  • Improve your vacancy factor-purchase duplexes, quads. & small multi-family
  • Join your local real estate investor group.
  • How are you going to hold the property? LLC, Trust, etc…
  • Persistence is the key don’t give up, the motivated seller is right around the corner.
  • Use other peoples money to make the purchase if you can, this helps maximize leverage, profits & minimize your exposure risk.
  • As a general rule don’t purchase condominiums as investment property, they are difficult to rent and you are competing against neighboring apartment communities.
  • Don’t rely upon what someone else said or what a neighbor told you about what some other property rented for. Do your homework what is “income potential”, net income, and long term appreciation.
  • Don’t be afraid to use the internet to research in investigating comparables, neighborhoods, and schools.
  • If you need to know what a property will rent for, call us, and we will help prior to making an offer.
  • Do be aware of County zoning laws and land use laws which can affect land
  • Do hire a Realtor who knows the area in which you wish to purchase.
  • Always consider hiring a professional property manager. If you plan on managing yourself obtain a copy of your State’s Statutes.
  • Do check amenities and see which ones will add value: for example...Fireplace, 4th Bedroom, Sprinkler system, Triple car garage, Fenced yard.
   
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