In today’s podcast episode I talk about buying rental properties. One of the most common questions I get from students is whether or not now is a good time to buy a rental property.
The answer is yes. It’s always a good time to buy a rental property as long as you can satisfy two criteria.
1. The property must cash flow from day one
2. You are buying the property at a discount
With today’s low interest rates where 30 year fixed mortgages are at 3%, and 15 year fixed mortgages are at 2.3%, it’s an absolute no brainer to buy a rental property.
The tax deductions and cash flow that you get from owning a rental property, along with the long term appreciation are some of the benefits of owning a rental property. Another benefit is that it’s a great hedge against inflation.
But by far, the fact that you will ultimately own the property free and clear and have no mortgage is the real benefit of owning a rental property. Once you have no mortgage, the rental property will pay you income for the rest of your life.
You don’t need to be a rocket scientist to figure out that investing in a rental property is a smart decision. If you have a job and decent credit you should definitely buy a rental property. If you want to learn how to buy rental properties and how to fix and flip houses, make sure you check out my Fixing and Flipping Houses Boot Camp.
However, it is much more beneficial for you to learn how to buy rental properties at a substantial discount to market value so that you create “instant equity”. And you won’t find properties like this on the MLS.
You will need to target and market to motivated sellers directly in order to find the best most discounted deals.
I recommend that you market to tired and disgruntled landlords, absentee landlords, pre-foreclosure and foreclosure, probate and inherited properties, as well as vacant, boarded up, and abandoned properties.
To listen to the podcast episode, click on the white arrow in the black bar (please wait a few seconds for the podcast to start)
