If you are interested in passive income, you may want to consider building a rental portfolio. Building a portfolio can include more than just rental properties. It can also incorporate flipped homes and Real Estate Investment Trusts (REITs).
When getting started on your portfolio journey, don’t be too ambitious. Be sure to learn how to increase the property’s value and how to manage tenants. Start by getting clear on your investment goals and strategy plan. Think of it as a business plan, which will help you get clear on specific, shorter-term goals. This increases your chances of becoming closer to achieving your objectives and defining the strategies you intend to use to achieve those goals.
Pull the Tigger
Once you’ve created your business plan for building your real estate portfolio, now it’s time to buy your first investment property. Be sure to work with an experienced real estate broker and lender. Once you have a property in mind that you believe provides a great investment opportunity, perform an investment property analysis to make sure it makes sense financially.
Grow Over Time
In time, it’s important to grow your portfolio, which means buying properties and adding them to the set. Keep in mind that when you’re juggling multiple rental properties or multiple properties in the process of being renovated, it can be hard to keep everything organized. You may want to consider a property manager to assist you in this process.
Measure Your Success
The easiest way to measure the success of a real estate portfolio is to hire a portfolio manager . Most professionals will conduct an initial investment audit and make recommendations on how to strengthen your portfolio based on the results.