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10 Strategies to help you succeed in rental property investing

January 9, 2011

There are lots of ways to make money in real estate, but I like the  “buy and hold” strategy.   “Buy and hold” is purchasing a property and renting it for cash flow.  It’s not a get rich quick scheme – it takes patience and you really need a passion for landlording.

I think this is a great way to get started in investing as you can maintain properties while keeping your full-time job.  I highly recommend keeping your day job as you will need this income to maintain your current properties and invest in new ones.  The idea of purchasing properties with “no money down” should not be your priority.  You might find a few of these deals, but chances are they won’t cash flow.  Cash flow is vital in rental property investing and should be your #1 criteria when you consider a purchase.

As a relative newbie, I started thinking about what has helped me the most with my investing so far.  I made a list of ten characteristics /strategies that have helped me.

  1. Live within your means
  2. Have a full time job with steady income too
  3. Have patience   –  Take your time, buy rental properties that cash flow
  4. Do not over leverage
  5. Be able to learn from your mistakes
  6. Be willing and able to deal with people
  7. Have a pool of dollars set aside for emergencies
  8. Have a contingency plan for any property you buy
  9. Be prepared to give up some free time – the income is not as “passive” as some make it out to be
  10. Have a passion for investing – Stay motivated – Rental properties are a real labor of love
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