If you want to make passive income with your investment portfolio, purchasing a rental property is a great move.
Investors are purchasing more homes than ever in America, totaling almost 20% of the housing inventory. It's clear that investing in real estate is one of the best methods for generating income consistently, so how do you get your piece of the pie?
Today, we'll tell you how rental property can add passive income to your portfolio and how to get set up as a landlord. If you've got extra capital lying around, there's no better way to spend it than purchasing an Oklahoma City rental, so keep reading and we'll help you do it the right way.
How a Rental Property Will Help You Earn Passive Income
It's not hard to see how owning real estate can bolster your portfolio. There's nothing easy about being a landlord, but getting monthly income from your renters makes it all worthwhile.
Although Oklahoma City is one of the most affordable rental markets in the country, prices have gone up around 10% in the past year. This presents a massive opportunity for first-time property investors to gain a stable month-to-month income.
Maximizing a Rental Property
You have to research the market. If you're going to maximize your monthly income, you have to buy a good property in the right area. Oklahoma City is full of up-and-coming neighborhoods that still have affordable single-family homes available.
Try to put a significant down payment on the investment. A lot of new landlords think that they'll soon be able to retire and collect income from their rental, but this couldn't be further from the case. It can take years before you start really earning money on your rental property unless you have a great mortgage.
Setting your rental price is an important part of this process. To do this, you need to think about your mortgage payments, but you'll also need to look at other similar rentals in your neighborhood. Charge a competitive rental price and you won't have trouble finding tenants.
There's a huge learning curve to being a landlord. Bone up on laws around the tenant-landlord relationship, eviction, and housing discrimination before you get started. It's important to get the right tenants in the building, or your rental property will start to seem like more of a hindrance than a smart investment.
Generating Income From Your Rental Property
To make money on your assets, you need to treat them with respect. If you don't have the time to spend maintaining the property and responding to tenant requests, tenant retention will start to become an issue. Once this starts happening, you'll end up with more vacancies, which means you lose money.
Keep your investment simple and your tenants happy by hiring a property manager. Home River is a full-service property manager that can help you with everything from tenant selection to rent collection. Contact us today to find out how we can help you generate passive income on your investment.
