Real estate investing is a great option for you to go into. There is a lot of money to be made out of owning your own property and asking for rent for others to live here. But you have to be smart and keep good records while running these properties or you could end up losing out on a lot of money in the process too. Good investors are going to see this as a gold mine but if you don’t know what is going on, you could be in way over your head.
When you are ready to get started on your real estate rental investment journey, make sure that you have the right crew by your side form the beginning. The professionals at 1-2-3 Financial Services are here to help. They can take control of your bookkeeping or help out with taxes so that you can concentrate on making your business grow with the peace of mind that the professionals are here to take care of the finances.
Finding the Right Property
Before you can start using rental properties as an investment, you need to pick the right building to get started with. There are some options when it comes to doing this. The first option is to go with single unit buildings. These are often homes that you will entice families into. These will not allow many people into each building, but most families are going to stay around for a long time so it is a pretty steady source of income.
You can also go a step up and choose building that hold 2 to 4 tenants. This has some of the stability of the single units but provides a little bit more income in the process. And finally, multi-tenant properties are great because you can make a lot of money in the process, but be aware that you will spend a lot of money on retaining the tenants as they will go through the building quite a bit faster than the other options.
Doing the Renovations Needed
In some cases, you will be able to pick out a building that looks great and you can just start advertising around in order to get the tenants that you are looking for. But in most cases, in order to get a good deal on the property, you will have to take one that needs a little bit of renovation in the process. This means that you must factor in how much it will cost to either do these renovations on your own or to hire someone else to help.
Determining how much you will need to spend on renovations can be challenging. Keeping this all together can be even worse. You should trust the team at 1-2-3 Financial Services in order to help you get through this process. They can look at how much you are spending on the project and determine if it is worth your time or if another endeavor is better for you.
Choose a Price and Pick Tenants
These two factors are very important when you are getting started in the business. You want to choose a price that is going to make you some money in the process, but also low enough that it will fit in with the requirements of that area and will bring in the right tenants. Do some research of the area and see how much similar properties are going for.
Once you have set a price for your rental, it is time to pick out the tenants that you would like to have inside. You will want to pick out tenants that are nice, will keep the building looking nice, plan to stay for a long time, and will pay their rent on time.
Getting Your Taxes Done Right
When you are working in rental properties, you have the potential to make a lot of money in the process. But you do need to be careful to keep good records and keep them in a safe place so that you are ready when it comes to tax season. It is easy to lose some of these receipts and then it is almost impossible for you to get the results that you are looking for during tax time. No matter what, if you don’t have proof of a purchase or you miss out on a rental payment, you could be in a lot of trouble with the IRS.
Since you are going to be so busy dealing with the rental property that you are in charge of, it is important to find a great professional who will be able to work along with you during the whole process. The professionals at 1-2-3 Financial Services are here to help you every step of the way. Whether you are just managing one or two small building or you are in charge of a whole fleet of them, make sure to contact our advisors to get started as soon as possible.
There are many great decisions that you will be able to make when it comes to investing in your future. Whether you are looking at rental properties or some other investment option, make sure to contact Louis Vestano with 1-2-3 Financial Services to get started. Our professionals can help you with bookkeeping on your endeavor or with your tax return when tax season sneaks up again. Contact us today to get started.
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