The 1 sentence synopsis of good residential investing can be implemented many ways, but the one that we feel is the most streamlined/efficient is as the following.
- Find the right market – this is not easy as the priorities of many investors differs, and some investors will only invest where they live. But choosing the right market will accelerate or depress your returns for years. It is very important.
- Choose the right real estate agent – this person will be licensed, have their own rental properties, know what makes a good investment, understand what tenants are looking for in a rental, know neighborhoods and rents, and be familiar with common problems. They will help identify the best properties that fit each of the criteria.
- Identifying the right neighborhoods is then quite simple with the right agent on your team. Identifying the move up neighborhoods where people want to be long term at the best prices with the best rents relative to prices is all that is left to do.
- Identify good properties that tenants want to live in long term, they are livable, and in good condition.
- Find the right property manager is the next step. They should be someone who manages the property as if they owned it themselves. Their primary job is finding a good long term paying tenant, and managing expenses well, along with the occasional unforeseen situation.
- With that comes a good tenant who pays on time, every month and takes care of the property and stays a long time.
This is the order and most important things to do to identify and keep long term quality investments.
