Turning Your Property Into a Rental

[John Reagan Johnson]

Investing in real estate is a great way to generate passive income and wealth if you are in a position to do so. Investing in real estate is not a get rich quick scheme. Majority of the time rental properties are not something that will have an immediate return, putting lots of cash in your pocket. It's a gradual, steady increase over a long period of time. It is kind of like going to the gym. When you first go to the gym, you may not have the figure you want, but staying with it over a period of time will get you the return you are looking for. 

One key piece of advice that I would give anyone looking to turn their property into a rental would be to make sure you are in a financial situation to do so. It's like opening a business. You need to have some capital on hand in case anything were to happen. Murphy's law is a real thing. "I've never had anything go wrong at my property. All units and appliances are in great condition. I do not foresee anything breaking." Then BOOM, the HVAC unit goes out week two of a tenant's lease, and has to be replaced quickly. Are you in a position to do that? If this scenario puts you in a financial bind, then it may not be the right time to open your property as a rental. Better to be prepared than be fighting an uphill battle!