The Complete Guide to Investing in Rental Properties

Helps you maximize your investment, minimize your time and effort, and make the most of the real estate market. This title shows you how to: select a house and negotiate the best price and terms; perform a financial analysis to maximize value; secure financing and prepare for your closing; find qualified tenants; and, draft lease agreements.

ISBN-13: 9780071436823

Media Type: Paperback

Publisher: McGraw Hill LLC

Publication Date: 04-16-2004

Pages: 288

Product Dimensions: 5.90(w) x 8.90(h) x 0.60(d)

Steve Berges is a real estate investment professional with over 25 years of experience. As Principal of Symphony Homes, he is an active investor specializing in creating value through various real estate mechanisms, including single family houses, multifamily apartment complexes, and the development and construction of single family and condominium housing communities. Berges holds an MBA degree in finance and marketing from Rice University. He is also the author of The Complete Guide to Buying and Selling Apartment Buildings and The Complete Guide to Flipping Properties.

Table of Contents

Section 1 How to Buy Rental Properties the Smart Way
1 Real Estate for the Smart Investor
Historical Performance
Four Ways to Benefit from Owning Real Estate
Economic Housing Outlook for the Coming Decade
The Lever and the Fulcrum
The Magic of Compound Interest
How to Build a $10 Million Retirement Portfolio
2 Selecting Great Rental Houses for the Smart Investor
How to Choose the Right Location
How to Choose the Right Type of House
Physical Condition: Inspecting Is Key
How to Determine the Best Price Range for Your Area
3 Eight Ways to Locate Rental Houses for the Smart Investor
Classified Advertisements
Real Estate Magazines
Internet Searches
Billboards and Signs
Real Estate Agents
Scouts
Professional Affiliations
FSBOs
4 Financial Analysis of Rental Properties
Traditional Valuation Methods
How Much Rent to Charge Your Tenants
How to Analyze Your Rental House Investment
Test I: Comparable Sales Analysis
Test II: Cash-Flow Analysis
5 Financing Your Rental Property
Financing Terms and Conditions
Additional Financing Considerations
Loan Documentation Checklist
Six Smart Ways to Finance Your Rental Property
6 Real Estate Sales Forms and Closing Documents
Real Estate Sales Forms
Residential Sales Contract
Property Condition Disclosure
Third-Party Financing Addendum
Loan-Assumption Addendum
Seller-Financing Addendum
Notice of Termination
Closing Documents
Title Report
Settlement Statement
Deed
Promissory Note
Section 2 How to Manage Rental Properties the Smart Way
7 How to Find, Qualify, and Keep Good Tenants
How to Find Good Tenants
Signage
Classified Ads
Referrals
Locator Service
How to Qualify Good Tenants
How to Keep Good Tenants
The Golden Rule
Visibility Adds Value
Concentric Circles
8 Lease Agreements for the Smart Investor
Residential Lease Agreement
9 Eight Smart Ways to Increase Rents by Making These Improvements
Good First Impressions
Landscaper’s Delight
Fancy Fencing
Room to Stow
Room with a View
Flattering Floors
Lighting the Way
Clean Kitchens
10 How to Decrease Expenses the Smart Way
Pass the Buck
Hire the Handyman
Utilize Utilities
A Taxing Matter
Dialing for Dollars
Management 101
11 How to Manage Tenants the Smart Way
Your Role as a Manager
How to Collect Rents when They Are Due
When and How to Raise Rents
How Much to Raise Rents
Section 3 How to Sell Rental Houses the Smart Way
12 Five Smart Ways to Enhance Your Rental House’s Marketability
Begin with the End in Mind
Maximize Your Exposure
Sell What the Buyer Wants
Price Your House to Sell
Sweeten the Pot
13 Six Smart Ways to Negotiate for the Best Price and Terms
Psychology 101
Market Knowledge Is Key
The Trial Balloon
The Blame Game
Put It in Writing
The Chess Player
14 Five Golden Rules for Success
The Five Laws of Gold
The First Law of Gold
The Second Law of Gold
The Third Law of Gold
The Fourth Law of Gold
The Fifth Law of Gold
Afterword
Glossary
Index Show More