-
Step 1
To start investing money in rental properties, you need to do a research, such as comparable properties market price, rental market (demand and supply) in the surrounding area, rental rate, etc.
-
Step 2
You also need to check with your bank, how much you can qualify for credit to buy a rental or investment property. Most banks will require you to put some down payment to purchase an investment property.
-
Step 3
You need to calculate how much is your potential profit by calculate your potential rental income minus all the expenses you need to pay, such as your mortgage payment, maintenance fee, improvement and repair, vacancy rate, advertising fee, management, etc.
-
Step 4
You can purchase a rental property already occupied by tenants or you can buy property and then find tenants to occupy your property. You want to pre-qualify your potential tenants base on their income, credit score or credit history, criminal background, etc. However you need to practice fair housing law, thus never pre-qualify tenants base on their race, color, national origin, religion, sex, familial status and handicap.
