The first investment property you own can be challenging to deal with on your own. One trick is to be less ‘on your own’ right from the start. This may involve a partnership deal to purchase the property or a simple pre-committed rental by a friend, (which is the path I choose on my first rental property). This can take the financial and management edge off the jitters of owning an investment property for the first time.
When I discuss owning investment property with others, co-workers or friends, I typically get the following feedback:
Risky proposition, not for me, thank you.
I couldn’t deal with the headaches of dealing with renters.
My handyman skills are not good enough to own a rental property.
What if I need to relocate, it might be hard to unload the property.
Most of these comments come from people who own a home. I assume it’s the risk aversion, the ‘what if this happens’, that keeps them from seriously considering rental property as a viable investment. They are already managing property, so it must be the additional responsibility of managing rentals with tenants, that turns them off. Partnering either by ownership or by renting to a trusted party, can go a long way in easing those initial concerns.
I will discuss the merits and concerns associated with both owning by partnership or renting to a trusted party in separate posts, (this post would be to long otherwise). Just keep in mind that you don’t have to initially, completely go it alone when committing to an investment property. In addition, resources such as this blog and the real estate investment community resources at large, are a great source and available at ones fingertips. This was not the case when I was starting out. Use them as guides and ask questions to alleviate the ‘what ifs’ swimming around in your head. You may find that owning investment property is not as daunting as you feared and can be financially rewarding in the long haul!