For many real estate buyers, it can be easy to get caught up in the emotion of the purchase. This doesn’t only include those who are purchasing a primary residence, but also investors who are obtaining the property as a generator of passive income, and ideally as a way to increase overall net worth.
Yet somehow, there can be times when, as you view and analyze a potential investment, you may start to envision living in the property yourself. Maybe it is located in a great area of town. Or possibly, the unit or the home has been decorated to fit your taste.
Regardless of what the reason is, though, doing so can be a big mistake. This is because getting too emotional with your rental properties can be extremely dangerous – primarily to your cash flow, as well as to the return on your investment.
Alternatively, when you view a possible new rental, you have to consider that instead of purchasing a property, you are rather buying the numbers – and these numbers should work for you. For example, when you make your down payment and pay the monthly mortgage, what exactly are you getting in return?
Likewise, how much time, effort, and money might it cost you in order to get the property ready for an income-paying tenant? If the numbers work – great. But if not, then it may be time to pass on the property and move on to something that may be more profitable to you.
One key factor in evaluating properties for rent will be the time that you may need to spend dealing with tenants, fixing maintenance issues, and providing overall management services. If this proves to be too “costly” in terms of making the best use of your time, then hiring a property manager to take over all of these duties can also pay large dividends.
For more information on how you can make owning rental property in Orlando and the surrounding area easy by working with a professional property manager, Contact Us today.