As the stock market swoops and dives like a maniacal seagull, I find myself looking more and more at alternate investment options. One I've always considered but never felt sold on is rental property. Dealing with another mortgage, dealing with tenants who wreck the place or want me to come over and fix something every other day - being a landlord has always seemed like a hassle.
Except, I know someone making a lot of money from it, and I've known many people whose first house was a two-unit building in which they lived in half and their tenant lived in the other, with the tenant basically making their mortgage payment for them. So I'm still curious enough to have obtained and read The Complete Idiot's Guide to Real Estate Investing Basics, written by David J. Decker and George G. Sheldon. Decker's a self-made millionaire real estate investor, and that fact alone makes getting into the field seem attractive.
I love these dummy and idiot books because they're often so detailed that every itsy-bitsy question you'd think to ask is answered for you. This book is no exception, and for that reason I think it could be the ultimate reference guide for someone just starting out as a real estate investor.
Like any good book for beginners, it starts at the beginning, giving you the pros and cons of real estate versus other investments. For example, rental property offers you both cash flow and asset appreciation at the same time, but it's expensive and not very liquid.
The book discusses potential goals as an investor - are you a buy and hold investor, or do you want to flip (buy a place, fix it up and sell it quickly for a profit)? It discusses how real estate agents, brokers, and lenders can help you, and when you shouldn't necessarily follow their lead.
"Who would want to live here?" That's the big question any investor should be asking upon first considering a property, and the book takes you through the potential tenant mix for different types of properties and locations, as well as minimum requirements for any property. It also discusses the research you must do into your local market to ensure you're paying the right amount for the property, and charging the right amount in rent.
Article comments
1 - Natalie Bennett
This article has been selected for syndication to Advance.net, which is affiliated with newspapers around the United States. Nice work!