No time? No problem...Do this!

It's no secret. By now we are well aware real estate is the bees knees! It provides us with Cash Flow every month. A place to shelter our income from tax, Appreciation for just owning the darn thing. Equity gained through having tenants pay the mortgage. The ability to increase the value by making upgrades to the property. Try doing that to a stock! The owners probably wont take your suggestions too kindly. But I digress. You are probably already well aware of the benefits of real estate. Your practically bed ridden from the FOMO your are experiencing, not having invested already! Don't be hard on yourself! chances are your busy at your day job, have kids, are part of community organizations, or spend the evenings lurking through the city fighting crime. Trust me, I get it.  

 In this article I'm going to outline step-by-step the EASIEST, SAFEST, and MOST PREDICTABLE way to own real estate for the busy W-2 worker/parent/vigilante. 

Step 1- It all starts with the pre-approval 

Easiest thing for most people to do is get a conventional loan through a mortgage company. Conventional loans will have the best rates, make for a competitive offer, and are very straight forward. 

PRO TIP: Please consult an agent regarding what mortgage company to use. Choosing the wrong one early on can kill a deal before it even starts.  

Step 2- Select a Market

Don't go crazy here. Lots of markets to choose from and people are making money in all of them. Remember, you can loose money in the best city and make money in the worst city.
I would suggest staying local as possible. That is not an option for everyone. In which case, choose the next closest metro you have friends/ family in, or at least know something about. It's important you decide this so you can move forward with your investing. 

Step 3- Finding an Agent/Property manager 

Now that you selected where you wanted to invest. It's time to find an agent that can plug you into the market. You want an agent that is familiar with investment. BiggerPockets has a great agent finder. (also see my other Blog on selecting an agent) Ask them for referrals for property management companies. This will be important to get a good property management company. (as you are already busy and are looking to be as hands off "as possible")  

Step 4- Buy a Single family investment 

This next step isn't so much a step. It's more the reasoning why I think single family property is the best investment for busy individuals. 

1. SFH is usually cheaper than purchasing multi units- This can be beneficial because it can help you break into a higher Class property. Higher class property will typically have less turnover, higher appreciation, and tenants that take better care of the property. This is ideal for a busy individual who want's a more passive investment.   

2. Tenants tend to stay longer- Usually a SFH has more room for a family to grow. There is a higher likelihood they will begin to make this their "home." Not a temporary situation they are indifferent to. This creates a more wholesome land lord tenant relationship.

3.SFH will typically have higher appreciation- SFH will generally appreciate more. This comes back to the area. A buyer will pay more for a property/ area they love. 

4. Tenants Pay all Utilities- This is a great perk to SFH. Being able to put everything but taxes and insurance in the tenants name is much easier and increases cashflow! With multi units landlord is stuck paying water and sewer expanses every month. This also makes it much simpler to analyze deals as a new investor! 

5. Lower Maintenance costs-   You will have at least 2 of everything! This naturally leads to more repairs and maintenance. (Not including turnover) With SFH once you have made a repair, you can rest easy you wont be receiving a call for a long time. 

6. Deals can be found on market- These deals are not hiding under a rock! They are right on the MLS. You don't need to create any substantial relationships or spend time making connections to source these deals. Your agent will be able to direct you to areas of the market where you can purchase turnkey rental property.   

In Conclusion. These are the 4 simple steps you need to take to own an investment property. Owning real estate can be very easy with the right strategy in place.
Purchasing SFH in B-Class area makes for a "more Passive" way to own an investment property. Couple this with the right Property Management and it can be virtually hands off. Don't pass up the opportunity to own real estate. it's within your reach! 

Thanks for reading! Happy investing!

Sincerely, Austen Mueller