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3 Things to Consider Before Owning Rental Properties

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3 Things to Consider Before Owning Rental Properties

Holdfolio is operated by seasoned, full time real estate investors. Therefore, no one on Holdfolio’s team would tell you that going in alone, whether as a property owner or a real estate investor, is a good idea in this industry. That is why the founders of Holdfolio worked for years under mentors learning the best real estate investment strategies before feeling comfortable setting out on our own to create a real estate investment company.

Below are the reasons why we chose to work together, rather than go in solo with rental property ownership.

  1. Working as a Real Estate Investor is a Full-Time Job

If you want an easy way to make money in real estate, property ownership is not it. When factoring in the time it takes to find the property, fix it, list it, rent it(hopefully to reliable tenants), and then collect rent, you’ve got a pretty tight schedule.

Next you’ve got to worry about taxes, insurance and all those little things that seem to constantly pop up. Unless you can afford to hire someone to manage the property, you’re signing up for a second job.

  1. Owning Property is NOT Cheap

If you are looking for a passive way to make money in real estate, we hate to break it to you, but in addition to the time it takes, the property ownership expenses have just begun!

Here are just SOME minor investments that come up in real estate investment properties:

  • Property Management Cost (10% of Monthly Rent plus a markup up to 100% on any maintenance that is done)
  • Property Tax
  • Repairs
  • Risk of Loss in Value of Property
  • Possible Home Owner’s Association Costs
  • Lawn and Landscaping Care
  1. Work-Life Balance

They say that stress is one of the top killers, so if you are seeking ways to increase cash flow without contributing to a heart attack, you should consider other real estate investment options. Before you decide to go at it alone and invest your time and money, you may want to take a realistic view of how rental properties work and how your life will be affected.

You’ll be constantly tending to the property and going through tenants who are frequently on the move and leaving you with the mess to clean up. And Lord help you if the property is near a college campus. Worst of all, you probably won’t earn enough money to treat yourself to that stress-free vacation the extra cash flow might have been intended for!

A Unique Way to Make Money in Real Estate

Want to become a real investor without all of the risks? Then give us a call today to learn how to make money in real estate without all the stress of property owning!


2 thoughts on “3 Things to Consider Before Owning Rental Properties”

  1. There are three different types of real estate investment properties that each and every real estate investor probably already knows. These are Vacant Land, Residential Properties, and Commercial Properties. We probably already know these three different real estate investment properties but do we truly know everything there is about them? Or how do we know the quality of each and every type of property. Once we are able to discern which is which, we must be able to calculate or at least have an idea of the value of that specific property.

    1. Thank you for your insight. It is a good reminder to new investors to understand those differences in cost, time commitment, and ROI.

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