Buying to rent is a long term strategy that real estate investors use to create annuity income and eventual long term wealth. Buying a home with the intent to renting it out for positive cash flow is a very successful business model that can help replace your full time income over time.
Unfortunately, managing a rental property can be difficult. Before buying your first property, it is important to accept the fact that you will be dealing with various personalities and situations that may be challenging to say the least.
Managing rental real estate is not for everyone, but generating positive cash flow can make a huge difference in your attitude in dealing with the issues that come with the owning rentals.
Developing sound marketing practices can keep your property full and minimize vacancies. Remember that any empty rental is a liability and can easily suck up your profits if not marketed effectively. Advertising for tenants can be difficult in a market saturated by rentals and being creative can be the difference to getting a tenant or losing them to your competition.
1. Students and Professors - If you are near a college or university, then your target might include students or professors that teach at the local college. Student housing can be difficult to manage unless you are nearby to deal with parties and other "tenant issues" that come with renting to students. Professors may be a better target if your rental is more upscale and requires a more mature tenant.
2. If your home resides in a very well known school district, a family may be a good choice to target. Utilizing the district as a key benefit, may also allow you to fetch a bit higher rent base.
3. Vacation homes can bring more transient tenants, but if your home is in an area that is desirable for vacationers, your strategy may target this audience for specific times of the year. Long term tenants may also be interested in these types of homes if they work in the industry.
In summary, your target market can determine how you market your buy to rent property and the ultimate goal is to generate a pipeline of prospects that you can select from when you need to fill a vacancy. The more interest you have the more selective you can be.
