While the idea of owning multiple rentals may sound simple, it can get tricky. The best advice that I can share with you is to make sure to have one fully rented before you get the next otherwise you will be sitting on multiple empty properties with mortgages due and no rental income coming in.
If you are able to have multiple rental properties at once then you are able to spread the risk of vacancy and help to cover your mortgage payments more. If you have only one rental that sits vacant then you are responsible for 100% of the house payment but if you have other rentals hopefully the additional cash flow each month can help cover the mortgage payment of the vacant property.
You are also able to benefit from different providers as they may give you a better deal to work on multiple properties that you own instead of just one. If you are able to build up your real estate investment portfolio you will of course be at the biggest advantage of realizing a higher level of income. Obviously the bottom line here is that the more rental properties that you have the more income that you can make.
What to do:
- Make sure that you are efficient in managing the rentals
- Screen your tenants carefully as the last thing you want is under qualified tenants that can’t make the rent or don’t maintain the property
- Ensure that you have funds set aside to cover maintenance costs on multiple units
What not to do:
- Don’t get in over your head thinking it’s a get rich quick method by having multiple rentals. Thoroughly weigh out the pros and cons of owning and managing multiple rentals
“Decide what you want. Decide what you are prepared to give up to get it. Set your mind on it. Get on with the work.” – H.L. HUNT
Owning multiple rentals is a wonderful way to boost your income, and even begin a full time career in real estate. Stay organized, and make sure you’re researching every property and carefully considering the amount of care they’ll require. For more helpful tips be sure to follow us on Pinterest, Twitter, and Facebook.