The Basics of Rental Income
Buying investment properties for a steady monthly rental income is a great way to make an extra income or even to become self-employed. Below are a list of guidelines and tips when buying rental properties.
When buying rental investment properties try to buy a property that makes you a monthly profit from rent. For example, if you purchase a duplex and you have a combined monthly mortgage payment plus expenses of $800 and can rent each unit out for $550 for a combined income of $1100, then your total profit will be $300 monthly.
After you have succeeded in buying and renting out your first investment property, you can then move on to purchasing the next one. You may now use any equity in the first property and all additional income to help finance your next rental property.
You may also want to invest money in improving the property so you can build additional equity and increase the amount of the rents. Spending money on improvements can be offset by charging higher rents once the improvement has been completed.
By repeating the above steps in buying investment properties you could soon be on your way to be self-employed.