How to Buy Rental Property

Video Transcript

"Stocks and bonds aren't the only money making investments in town. Welcome to real estate. I'm Richard Blake in Clearwater Tampa. And I'm here to explain to you how you can buy a rental property. The first thing that you're going to want to do is contact your local real estate agent and ask them for a list of properties available in the specific community or neighborhoods that you're most interested in. Once you've located that special property, you're going to want to run a comparative market analysis on the neighborhood. And find out what the current values are. This will allow you to make a good reasonable offer and make sure that you don't overpay for this property. When calculating which properties it is to go after, you're going to want to look at how much the mortgages are on these homes, and what the going rental rates are in those specific neighborhoods. So for example, if you know that you can't rent out a house for more than what the mortgage rate is going to be, then you're going to want to stay away from those neighborhoods as a whole. Ask your local real estate agent which neighborhoods warrant X amount of dollars for monthly rentals. And then at that point you can kind of work backwards and say, you know, if this is the monthly payment that I have coming in how much mortgage will this afford me? OK? Again, your local real estate agent will be able to get all the statistics for you. It's a great place to start. I'm Richard Blake in Clearwater, Florida. I hope that this has helped you with the first steps of how to buy a rental property. Thank you and have a great day."