Rental Property – Turning A Small House Into A Monthly Income

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The common play for investors as of late is to turn a small house into a rental property due to the profitability of this investment.  This investment allows an investor to choose from multiple different exit strategies, as they can rent it out and sell the property when it becomes profitable to do so.  These investments are generally appropriate for a beginning real estate investor, as the amount of capital that needs to be invested dwarfs other real estate investments.

Those investors who decide to invest in rental property by turning a small house in to a monthly cash flow machine capitalize on what a large number of investors are currently doing.  The key to this technique is to find a property that is being sold by a distressed seller who is willing to sell it below the market value.  While the current market isn’t littered with these sellers, there are still many out there who just want to sell their house fast.  Those investors who can target these individuals can secure a deal and help the former owner out of their problem.

After purchasing a small house for a good price, the next step is to convert this house into a rental property.  Most of these small houses don’t have to be renovated a great deal, as they won’t be split up into duplexes due to their size.  Investors should still put in the work to make the property attractive to renters and make sure that everything is up to code.

Investors can then wait until property values have reached a level where they can sell the property and make a profit.  This double exit strategy has many real estate investors talking and this effectively reduces the risk an investor has to take.  This rental property allows an investor to pay for the mortgage, while collecting equity in the property.  Some investors may consider renting out the property indefinitely, as rental property is a profitable pursuit.

This type of rental property is especially suited for beginning real estate investors who want to enter the field.  There isn’t a great deal of risk and the capital required to purchase these small houses is generally minimal.  Those who have the credit can obtain lender financing and finally enter the real estate field with confidence.

Those investors who take advantage of the current market can still find small houses that can be purchased for below their market value.  Convert these houses into a rental property and sell the house when the market calls for action.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

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