5 Tips for a Low Stress First Rental Property Investment 5 Tips for a Low Stress First Rental Property Inve | Page 4

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Tip #2: Don’t Just Rely on Real Estate
Agents
• Sure, now and then you can work with a real
estate agent who handles foreclosures and get a
good deal. Remember though that these will be
“listed” foreclosures on the MLS, Multiple Listing
Service. You and all of your competitor investors
have access to the same information, so
competition will likely drive up your cost of
acquisition.
• If you do your own marketing and locate
motivated sellers, you have a greater chance of
negotiation a good deal. Another approach is to
work with an experienced real estate wholesaler.
They are investors too, but they are experts and
finding great deals that they can flip to rental
property buyers at a below-market value price.
Just check their references out and be sure they
do know what they’re doing.
Tip #3: Know What Will Rent and for
How Much
• Check with property managers who handle
single family homes. Go to the classifieds and
check out what homes similar to the one you’re
considering are renting for. Are the owners
offering incentives like free months? This is
usually a sign of a soft rental market or heavy
competition, so you may want to try another
neighborhood or property type.
• Call on ads, drive around, talk to landlords as if
you’re a tenant. The most important thing for
you to know before the next tip is what you can
reasonably and conservatively expect for rental
income and low vacancy.
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