Want to be a real estate investor? Interested in rental properties in the Dallas / Ft Worth Area? Here is the secret in 5 easy steps.
Want to be a real estate investor? Interested in rental properties in the Dallas / Ft Worth Area? Here is the secret in 5 easy steps.
1) Invest in a easy to rent property. What does this mean? Stick to the major developed areas such as Plano, Frisco, McKinney instead of rural properties far from the metroplex and far from the job base. The best rentals are easy to commute to workfores with good paying jobs, The properties that perform the best are 4 bed with 2 or more baths and 2 car garage. Preferably a single story property in a neighborhood managed by an HOA - home owners association. Not the largest or smallest house in the area, and nothing complicated such as backing to a commerical space, located on busy street or having power lines on the property.
2) Strong screening. Finding the right tenant is as important as finding the right rental property. Setting standard rental criteria is crucial to being consistent in your portfolio. Statistically with over 20 years of experience in screening tenants 70% of the tenant application should be based upon credit score. It has been shown that people who value their credit scores have a vested interest in maintaining those scores. 20% of screening should focus on income levels and ability to pay. 10% on historical informatin. Past performance is typically a strong indicator of future execution.
3) Prioiritize maintenance. Properties should be rent ready before being marketed, poorly maintained properties will perform poorly. When repairs need to be made do them quickly with quality materials and vendors.
4) Dont allow excuses. Tenants must follow the lease for payment schedules as well as following the terms of the lease and house rules. Maintenance vendors must schedule and perform repairs quickly and correctly.
5) Hire a property manager. The cost is worth the peace of mind for professional management. A professional manager can help an investor navigate the laws, rules and regulations that impact rentals and change constantly.
