Once upon a time, Mike McCurry began a career in real estate after deciding to invest in purchasing a rental property. More than 30 years later, Mike has become a trusted local expert for families and businesses alike who are investing their resources in the real estate market.
Here’s what he has to say to anyone considering purchasing a rental property in Hinsdale, Clarendon Hills, Westmont, or nearby areas…
“Consider the benefits…”
The investment provides a tangible asset where you drive by it, improve it, or just maintain it.
If you take out a mortgage, the tenant essentially pays the mortgage and you put up the upfront cost associated with obtaining it. Not only does it provide a return because of excess rents, it pays the principle down.
Also, by providing a home to someone to rent, you have done a great service.
“…and also understand the risk.”
Many of the same risks are associated with purchasing rental properties as there are to owning a primary residence. Market conditions change over time and can go up or down, properties cost money and time to maintain, and rules could change in condo associations that could affect the ability to rent.
“Be sure to understand the county and village rules before investing in a rental property.”
Some areas, like Cook County favor the tenant much more than the landlord when it comes to disputes like evictions. There might also be local ordinances to register your rental with the city or take classes to be certified as a landlord.
“Start with properties that are close in proximity to your primary residence.”
Travel time, especially when there is an emergency, can be difficult. Talk to an attorney about putting properties in a trust and an LLC. Once you own enough properties and have equity in them, may banks will loan money off of the LLC.
“If you own just a few rental properties, you can most likely manage them without a rental management company.”
With the help of a few good vendors, like handyman, plumber, electrician and landscaper - most of the maintenance can be managed. A Realtor can be employed to procure and screen tenants for the landlord.
Whether you manage personally or hire a property management company, it is a good idea to put your eyes on the properties every month so that you can check on your investment.
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Considering an investment in a rental property? We’re here to help!