When talking about real estate, what comes to mind right away? That’s right, a straight residential rental. Many novice investors believe that renting any type of dwelling is considered a great rental investment. Unfortunately, there’s much more than simply renting out a house, a unit, a room, etc.
A true rental, in our point of view, is when you rent out a space or place for someone else to use for an agreed amount of rent that covers the agreed expenses and yet, still have cash flow after everything is paid. When that happens, that extra money can be used for whatever your heart desires! As seasoned investors, we want to make sure our rental properties cash flow each month and use that extra money to reinvest back into our business and/or mortgage.
Take caution … although a straight residential rental seems to be the most simple type of real estate investment and being a landlord collecting rent every month may seem cool, it requires a lot of due diligence and research prior to owning one and the on-going maintenance, tenant issues, by-laws, and management can be quite overwhelming!
If you are interested in learning more about this type of real estate investing, feel free to contact us and we can provide a one-on-one consultation with you to go through each step of owning your very own rental property and making it a successful investment!