Buying multiple rental properties
If you are thinking about buying one property, then there is a good chance that you may consider what it would be like buying multiple rental properties. Owning several properties (or owning an entire unit that can become a multi-family property investment) can be a great way to boost your income and have a sound return on your investment.
That said, it is important to recognise that buying multi-rental properties is not necessarily the easiest of things to do.
To help you to work out how best to approach this decision (and make the most of your money at the same time) we have put together our guide to buying multiple rental properties.
Why buy more than one?
For many the first question will be why buy more than one property, or why have a property that can be let out to multiple tenants? The idea is that you are taking those steps to buy a portfolio of properties and in turn, a complete investment strategy.
The most obvious has to be the fact that when you own more than one property, you can make as much money as possible to bring in. However, there are other benefits. One of them is that if you have an issue with a property, such as the tenants leave and you need to find a replacement, you will still have money coming in from the other properties.
Others buy more than one property because they can then run their rental investments like a business, making them money, managing them and of course taking the time to deal with any of the things that crop on along the way.
Can I buy one and go from there?
For many people, budget is the main issue when it comes to buying multiple properties. You may have been able to raise the funds to buy one property, but not multiple. For those people, it is a good idea to use the return on the investment that you have made to save up, you can then, once you have raised enough funds, use these to buy a new property that can be rented out.
This of course can take time, which means that you are going to need to be patient. For some, this could be a 10-year project, but of course, that all depends on the property that you already own, as well as the properties that you are looking to own in the future.
Go for fixer-uppers
If you do want to try and bring new rental opportunities as quickly as possible, then you are going to want to find ways to maximise your budget at the earliest stage.
One way that you can do this is to buy fixer-uppers that you can then rent out. This approach does appear to be good on paper, but, it is important to remember that you are going to need to budget carefully to take into account the work that may need to be completed on the property before you can rent it.
If you can factor this in, or tackle it yourself, then this can be a great way to ensure that you have the best return possible for your buy-to-let property.
As you can see, there are plenty of things to think about when you are considering buying a property to rent out. The main thing to do is to take your time and to focus on what it is that you want to buy, what you want to achieve in the long run and of course, how much money and time you have to invest into this portfolio.
Also Read: Best Areas to Buy a Rental Property