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Investing in Rental Property: How to Buy and Rent Out Your First Unit

Introduction

Buying your first rental property can be a game-changer. Passive income, property appreciation, and tax benefits—what’s not to like? But success depends on choosing the right property and managing it well.


Step 1: Understand the Numbers

Look at:

  • Cap Rate: Net operating income ÷ property price
  • Cash-on-Cash Return: Annual cash flow ÷ initial investment
  • Appreciation potential in the local market

Use a deal analyzer before buying.


Step 2: Pick the Right Property Type

  • Single-family home = easier to finance/manage
  • Duplex = live in one unit, rent the other
  • Condo = less maintenance, but HOA fees

Step 3: Know Your Ideal Tenant

Who do you want to rent to?

  • Young professionals?
  • Families?
  • College students?

This affects your location, rent range, and renovation choices.


Step 4: Screen Tenants Thoroughly

  • Credit check
  • Background check
  • Verify employment/income
  • Rental history

Bad tenants can kill your cash flow fast.


Step 5: Decide on Self-Management vs Property Manager

DIY saves money but takes time.
A good property manager typically charges 8–10% of monthly rent but handles everything from maintenance to evictions.


Final Thoughts

Owning rental property isn’t 100% passive—but it can be 100% worth it with the right plan. If you’re thinking about becoming a landlord, I can help you analyze deals and find the right market.

📈 Want a free rental property calculator? [Download here]

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