My role in property management was everything from start to finish for 9 residential properties. I did everything except supply the bankroll. This included:
- Property Selection
- Prep for Renting
- Tenant Selection
- Rent Collection
- Monthly reporting to owner of income and expenses
- Tenant Eviction
- And, Sale Preparation.
Ok. I've probably scarred off 95% of the readers. That's probably a good thing because real estate investment, just like everything else is hard work. There is an element of risk. That is absolutely why it is one of the number one ways to make big money over the long term. The market may go up and down, the house may even burn down, but it is the land that remains. Unless of course the river floods but that is a different topic.
I love real estate property investment! There is absolutely nothing much more gratifying than seeing a young couple start their lives together in the cute home that you have carefully picked and they are renting from you until they can buy their own. I am a firm believer in the American dream. I've lived it and loved it and hope that it never dies from the heart of the people. Being able to play in your own back yard and sleep in your own bed at night is the closest it gets to heaven on earth. If lawn mowing is not your thing condos and apartments provide a home with convenience and hopefully a good view.
Investing in residential real estate provides something new everyday. Do you like:
- Looking at houses?
- Comparing prices and crunching the numbers?
- Mowing lawn?
- Meeting new people?
- Are you a handyman (or woman)?
- Finding creative solutions to problems?
- Managing a rehab project?
- Carpet cleaning?
- Dealing with bankers?
- Working with hired people to get a job done by a deadline?
- Watching the market for prices?
The next part will cover what I think are the top things for success in owning and managing residential real estate. In many areas of the country houses are half the price they were even three years ago. Those who already investing in real estate suffered a major decline in the value of their portfolio and many had to make extremely difficult decisions about how to deal with the situation.
Prices are down it is an ideal time to consider if this is a worthwhile time to consider real estate as a long term investment.
Getting these homes back into the portfolios of individual investors as their private residence or investment property will go a long way toward rebuilding the economy.
Originally posted Aug 25, 2010