Tips For Buying Your First Income Property In Oak Park

By Joshua Carter


Owning real estate is never a bad idea, unless you pay too much for it. Even when the housing market is down or on shaky ground, it will eventually turn around. If you've decided to buy your first income property in Oak Park, you should do lots of research, take some precautions, and get plenty of advice from real estate professionals.

You want to start with residential properties. These transactions are almost always less complicated and time consuming than purchasing commercial properties. If you're looking at a house rental that is occupied, you need to discuss the tenant's history with the seller. You want to choose a house with a stable occupant who pays his rent on time and doesn't have a history of constant demands.

You can save a lot of time by hiring a property management company. When you work full time and have a busy family, you might find it hard to manage rental properties on your own. If this is the case, there are companies that specialize in managing them for others. You should do the research necessary to find a reliable company charging fair rates. These managers can be especially helpful when you are just starting out in the real estate investment business.

Buying in the vicinity of apartment buildings is something most experts suggest. Doing this gives you the opportunity to expose your rental house to people who are already looking for properties to rent. Many prefer to live in single family homes, instead of apartments, when they have the opportunity. It may be that you can save money on advertising because there are so many renters in the area riding by your house every day.

In the same vein, you need to look for properties that are close to amenities. If there is a university or community college is your town, start your real estate search there. Students will usually rent for all the time they are in school. You want to look at houses that are convenient to bus routes as well.

Experienced landlords are a great resource for inside information. Some towns have active landlords associations. If your town has one, you need to become a member. This is great place to get good advice. Most landlords enjoy discussing their experiences and giving advice to new investors. They also know who to call when you need a cheap landscaper, plumber, or electrician.

When you are getting a loan to purchase a rental, be sure to put plenty of cash down. Buying investment properties won't do you any good, if all the rental profits have to be put back into mortgages. You need cash flow for a purchase to make sense. When there is money coming in you won't have to worry so much when there is a downturn in the market.

Buy properties that are ready to rent when you first start out. Unless you are and experienced rehabber, you should look for houses that are pretty much move in ready, or already rented. That way you'll have money coming in right away instead to having to lay out cash to make repairs.




About the Author: