REI Wealth Monthly Issue 09 | Page 29

LANDLORDING 101 – CASH FLOW KAREN RITTENHOUSE Everyone wants to own real estate (or so it seems) but very few new investors consider the fact that it only takes one property to make you a landlord. If you want to own properties, you will be a landlord and there are some basic things to consider before you get started. What type of property should you buy? Buy in areas you know. Don’t guess about an area or purchase in a location someone suggests - know your market. Pick two or three nearby neighborhoods with good schools and convenient shopping. Areas you know are easiest for keeping up with statistics such as crime, property values, and rental and vacancy rates. When starting out, I knew a little bit about the neighborhood I lived in, nothing about any others. Trying to search through for-sale marketing and determine locations was overwhelming. I decided, almost immediately, to focus exclusively on three separate neighborhoods - focus, study and buy there - ignore the rest. Own properties near where you live. This makes filling and maintaining properties much easier. You want something nearby because you’ll be driving by, especially when the properties are vacant, to check on your investment, to put out signs when marketing, to meet potential tenants and, if you plan to manage it yourself, to do repairs.