How To Buy Your First Rental Property (Beginners Guide)

Investing in real estate & buying your first rental property can be a fantastic way to build true wealth and passive income. But remember, the money is made when you BUY a home, not sell it or rent it out. You need to factor in ALL of your expenses and buy your first rental property at the RIGHT PRICE. A common mistake beginner investors make is not accounting for ALL the monthly expenses.

The THREE WAYS YOU MAKE A PROFIT with a rental property are
1) Cashflow
2) Appreciation
3) Debt Paydown

Make sure to account for the rentals VACANCY RATE which the period between your tenants. I typically deduct 5% of the monthly rent to compensate for this.

You also want to calculate the estimated REPAIR COST to the home including repairs you only need to make every 10 or 20 years. I typically deduct 10% of the monthly rent to account for this.

If you intend to eventually hire a PROPERTY MANAGER, they typically charge 10% of your monthly rental income.

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My name is Malcolm Lawson, I am a Maryland Real Estate Agent and team leader of The Lawson Group of Keller Williams. Schedule your FREE home buying or selling consultation with me and my team here LivingInMaryland.com

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The Lawson Group
Keller Williams Flagship Of Maryland

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