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How to Start Investing in Kennesaw Rental Real Estate

Kennesaw Rental Investor Doing Research and Taking Notes Investing in Kennesaw rental real estate can be profitable. It also features some questions. If you have been considering investing in your first single-family rental property, there are only some ideas you need to understand before you get started. By learning as much as you can ahead of time, you can make the practice of purchasing your first investment property a positive one.

Learn the Trade

Before you begin examining your first investment property, it’s crucial to understand as much as you can about rental property investing from those already doing it. Acquaint yourself not only with the process of buying and owning rental properties – and all that involves – but also with the best practices of successful investors.

You can also begin by studying some of the top books for people new to real estate investing. Attend area meetings with business leaders and get to know a local landlord or two; it may well be a wonderful idea to read about landlord/tenant laws too. Learning so much as you can about every facet of buying and owning rental real estate is the key to successfully making your first investment.

Prepare Your Finances

In conjunction with learning the trade, it’s also important to prepare yourself financially before buying a rental property. If you plan to finance your investment with a mortgage, you should first get your finances in good shape. Optimize your credit score, pay down debt, and have at least a 20% down payment plus closing costs saved up before your first purchase.

Bidding on investment properties can be very competitive, so it’s also a good idea to choose a lender and get pre-qualified before you make any offers. Performing so will increase your chances of getting the best deal on your first rental property.

Crunch the Numbers

Once you’re ready to start seeking your first investment property, there are several key calculations you will need to use to assess each one. Purchasing an investment property isn’t like buying a personal residence or even a vacation home: it’s important not to let emotion impact your choice of property. Instead, evaluate potential properties based on things like your expected return on investment (ROI), profit margin, and operating expenses.

Be wary to account for all expenses, including taxes, landlord insurance, repairs, and improvements. You’ll also want to do a thorough rental market analysis for each potential property to regulate your expected rental rate and the strength of local demand.

Choose a Strategy

Lastly, it’s important to note that there are many distinct investment strategies for owning rental properties. Not only should you find out how much you can about these strategies, but for your first investment, it’s a good idea to choose an investing niche that is beginner-friendly. For example, unless you are a contractor or handyman, it’s best to avoid fixer-upper properties for your first investment.

Also, it’s a good idea to aim for a lower-cost home your first time through the process. A lower-cost rental home can help you experience the full investment process while reducing the overall risk of your investment. This makes it a great starting point for new investors.

 

Getting started in rental real estate investing can be both exciting and a bit overwhelming – there’s a lot to learn both before, during, and after buying your first investment property. For this reason, one of the best things you can do is have an expert Kennesaw property manager on your side. At Real Property Management East Cobb, we work with rental property investors to find and assess prospective rental properties. Contact us today at 770-622-5657 to learn more.

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