Likely sounds crazy but I’m in the beginning process of purchasing an investment rental property. I’m familiar with the purchasing process and whatnot, but would be curious if anyone has feedback on managing the rental directly or signing on a management company? It’s going to be a single-family home for context. Do I need a lawyer for this endeavor, where is the best place to get a rental agreement, suggestions on rent pricing, etc. Any information would be greatly appreciated!
What are the prices in your market? If they’re high, hold off for now. Second, definitely consult a lawyer and accountant. The first will advise you on how to structure the purchase. The second will help you estimate the returns of what you can expect from the property as an investment. Third, if I were you, I’d definitely hire a management agency. Since you’re new to the industry, you might not know the raw technicalities of managing a space. Billing your tenants is easy, but fixing a leaking pipe, or solving an electrical problem requires gifted hands. And these issues ultimately decide the difference between a happy tenant and one that’s sure to get pissed off. Fourth, get in touch with realtors and agents. Know what the rental prices are in your area, which will help you roughly estimate the income based on the available area for leasing out. Get your expenses estimated, and see if this is actually worth pursuing.
Thank you for your thoughtful response. I appreciate it.