#1 Thing to know if you’re diving into real estate investing or “landlording”
Frequently I’m approached by homeowners looking to convert their homes into rental properties. I’m all for it! If you can hold onto your home and rent it out for a positive cash-flow…why not??? However, often times these homeowners have never had any experience with dealing with tenants, screening applicants, preparing lease docs and more. Because they have such a personal attachment to their home they start off and move forward with their emotions at the forefront. I’ve seen this time and time again!
Leading with your emotions causes a HUGE amount of unnecessary stress. I honestly thing that we can apply this to so many areas of our life but we’ll stick to investing for now! This can also lead to missteps like inadvertant discrimination or failure to abide by state and local regulations placed on rentals and their owners; both of which could be SUPER costly.
So what’s the #1 thing to know????
YOUR HOME IS NOW A BUSINESS!
Looking at the home that you’re about to rent as a business rather than you’re “baby” is going to spare you in so many ways! It will help you make diplomatic and rational decisions that will help you increase your cashflow and hopefully minimize your expenses.
This is something that is definitely practiced and it’s something that I continue to work on personally! If you keep this at the forefront of your mind it will help you make the best decisions as you move forward as a real estate investor!!!