Investing on rental properties can be a wise move especially for individuals who may not have enough time and energy to run a full-time business. The California Real Estate Professionals Association (CREPA) says a rental property is not time-consuming to run. All you need is to maintain the property well, manage payments and rentals, and you can be earning already without you exerting too much of an effort.

“You can even ask a licensed real estate broker to manage the property for you and you will be all set. ” says Olivia Lancaster, Chairperson of the CREPA.

“Your real property value is appreciating as well, so by the time you would like to liquidate some properties for cash, you have surely recouped your investment, and have certainly earned from it,” adds Lancaster. Lancaster says rental properties especially in city centers and near business districts are those that are very profitable.

She adds that even in areas where there are great school districts, lifestyle amenities, and tourist spots, profits can definitely be guaranteed. Real Estate Wiki

As for advice on how to purchase rental properties, CREPA says it is important to consider location and livability in the area. “These factors will dictate the demand for a rental home, and at the same time the rental cost that you can command,” Lancaster explains.

Personal finance website The Balance has also shared important things to consider when investing on a rental property.

“Investment properties generally require a larger down payment than owner-occupied properties, so they have more-stringent approval requirements. The 3% you may have put down on the home you currently live in isn’t going to work for an investment property. You will need at least 20%, given that mortgage insurance isn’t available on rental properties.”

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More tips

The website inc.com also shared more tips in finding the right rental property investment and growing such. National Association of Realtors

“Managing a property isn't easy. If you choose to be the landlord, it's your responsibility to collect rent, keep the books, file taxes, screen tenants, handle maintenance, work out the insurance plans, write the contracts, and more. Many feel that they're up to the challenge and try to handle the work themselves.”

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