Whether you are looking to purchase a rental property to earn additional income or because you have decided to switch career paths, you need to know whether the property you are considering buying is worth your investment as well as what the risks are associated with purchasing it. Buying a rental property can be rewarding but only if you take the time to assess how much you are going to have to put into it (i.e. time, effort, money) in order to see a profit.
One way to decide how much the property will generate in income is by researching similar properties in the same area to see what they are renting for [Source: The Balance]. You will then need to consider how much you will be paying in mortgage and other fees to determine what you will be walking away with at the end of the month. While some properties may allow for an investor to make a decent profit each month, others may find that they will have to wait until the home is paid off until they really start seeing a decent flow of revenue coming in.
Aside from choosing a property that you know will make you money, you also need to be sure there are no underlying issues. This is where an Orlando, FL real estate lawyer comes into the picture. Before you buy a rental property, you are going to want to have a real estate lawyer conduct a title search to find out who all the past owners were, if any liens have been placed on the home, etc. The last thing any investor wants is to find out later on down the road that they will have to pay more into a home they were supposed to be making a profit off of.
Creating a Landlord-Tenant Agreement
Once you have chosen a rental property and your Orlando, FL real estate attorney has cleared it for purchase, one of the next steps is to have them help you create a landlord-tenant agreement. It is extremely important that you cover all your bases when it comes to creating these agreements so that your tenant understands what they are responsible for and what your obligations are to them.
Now, if you have any questions pertaining to rental properties or are ready to start investing, the Orlando, FL real estate lawyers at Legal Counsel P.A. are ready and available to provide you with the assistance you need.
Legal Counsel P.A. has an office in Orlando which is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]