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In this article I’ll show you how to build a real estate investing business that will unlock time and location freedom for you and your family.

Real estate investing tends to get a reputation of being a time sucking business model. But don’t be fooled. 

If you’re using the right systems to build foundations for growth, you’ll actually be able to collect passive income while scaling beyond your wildest imagination.

It all starts with choosing one city, one strategy, and one property type to invest in.

But, how will you know which one to choose?

You might also be asking, how about tenants and property management – isn’t that a huge time investment?

And how can you buy multiple properties without a ton of cash in the bank?

I’ll answer all those questions and more in the sections below.

Step #1 – The Strategy, Market, and Property Type

Taking the first step is the most difficult part of any process.

If you can decide which strategy you’ll use and what market and property type you’ll invest in, you’re halfway there.

The good news is – I wrote an entire article about this.

Click here to learn how to choose a Canadian market & property to invest in.

Long story short, we focus on finding undervalued properties located in an evergreen area of a value market with over 50,000 in population.

Now, if you’re not sure what any of that means, I highly recommend going back and reading the previous article. 

As for the investing strategy, we focus on the BRRRR, which stands for Buy, Renovate, Rent, Refinance, and Repeat. 

What’s great about the BRRRR strategy is that it makes room for higher ROI.

Here’s why:

For the BRRRR project to pay off, we look for discounted off-market properties that need a bit of work.

The two KEY factors here are:

  1. Property type – multi-family residentials with 2-4 units. 
  2. Motivated sellers – individuals eager to get the property off their hands ASAP.

The properties we go for are typically slightly distressed but not too rundown to the point where it would be too expensive to renovate.

The renovation then allows us to leverage forced appreciation (an increase in property value) to bump up rents and also get a hefty refinance cheque after the project’s done.

Having done dozens of successful BRRRRs in under 24 months, I’ve been able to pin down the most important systems and processes to generate profits through multifamily investing.

At rentalconsulting.com, we share these systems with our members through one-on-one and group coaching calls, video course content, and a value-packed library of legal documents, scripts, and materials to support the process.

Step #2 – Financing the Real Estate Investment

Now, the biggest misconception in real estate is that you need to be rich to buy property.

This is absolutely not true.

In fact, I had less than $10k to my name when I bought my first long-term rental.

And I did this through something we call a Joint Venture. 

Joint Venturing is a strategy where you partner with another investor to purchase a property together (and split the profits 50-50).

This partnership consists of two parties:

  1. The active partner – the one who takes on all the work (finding deals, analyzing properties, closing deals, and doing property management).
  2. The money partner – the one who provides the financial resources for the purchase.

Now, if you’ve maxed out your mortgage capability or your credit score isn’t strong enough to finance a real estate investment…

You’ll step into a joint venture as the active partner where all you need to bring to the table is the time and the knowledge needed to source and close deals.

(And don’t worry if you’re not there yet, we’ll teach you everything you need to know at rentalconsulting.com).

Once you put in the work and find the deal, present it to your joint venture partner and close the sale, you’ll officially own real estate without putting any of your own money down.

Now, some people don’t like the idea of owning only 50% of a property.

But the one thing I always like to say is – I’d rather own half a watermelon than an entire grape. 

Besides, joint ventures are a great way to not only step your foot in real estate but also to snowball your portfolio and scale quickly.

Because there is really no limit to how many joint venture deals you can do in a year.

You can just as easily repeat the process multiple times and own 50% of 5 properties in 12 months.

Does this sound like a better deal? 

And for those who’d rather go into the trenches alone and keep the entire watermelon, there are other creative financing strategies to consider such as private money lending. 

Click here to read our latest article on creative ways to finance your first (or next) real estate investment.

Step #3 – Renovate and Rent Your Property Out

Let’s say by now you’ve closed on a deal, whether through a joint venture or not. 

Now the next step is to renovate the property to increase the value (as explained in Step #1).

Although renovation sounds like a complex and intimidating project, there are THREE KEY FACTORS you need to take care of in order to make it work:

  1. Choose what you’re going to renovate strategically.

    Look for functional improvements that will make the property more attractive to live in, such as bathroom and kitchen renos.

    Don’t overcomplicate the process and don’t go too fancy with the details.

    For example, you don’t want to install marble floors in a neighborhood where it would be difficult to demand higher rents (we always look at comparables first to determine what is the maximum rent we can charge in the area and which renos will justify the price)

  2. Hire the right contractors.

    Maybe even the most important part of the reno is choosing contractors for the job.

    You can look for qualified contractors on Google, Facebook groups and Kijiji, as long as you’re getting quotes from multiple people and not settling for your first choice.

    Make sure to set clear expectations with your contractors and put it all into writing before starting the project.

    (I’ve had a couple encounters with “contractors from hell” that I might share in one of the future articles). 

  3. Source quality materials at lower prices.

    Last but not least, you want to be creative when sourcing quality materials for the renovation.

    Not everything needs to be brand new – there are actually lots of appliances and furniture pieces in nearly mint condition available on Facebook Marketplace.

    And you can get these at a significant discount to keep the project within budget.

    Speaking of which, make sure to prepare a detailed budget plan for the reno and calculate the expenses properly.

Now, after the reno’s done and the property is ready to be rented out, you’ll need to attract A+ tenants and vet them before having someone move in.

Same as with the contractors, you never want to settle for the first option available.

Make sure to run a detailed background check for each potential tenant and take a look at their credit and employment history to determine whether they will be a good fit or not.

You want to focus on finding tenants who are open to communicate and easy to talk to (trust me, this will save you so much time and energy in the long run).

Step #4 – Outsource Real Estate Portfolio Management

At the beginning of this article I promised to show you how to build a remote real estate investing business that will unlock time and location freedom.

And you’re probably thinking there’s so much work involved in this entire process… how can it ever be remote?

The key is in building out systems and processes that will allow you to outsource all the work so you can travel and live life without being tied down to your properties. 

After my first few property investments I was drowning in work. My time was being chewed and spit out with no light at the end of the tunnel. Out of pain, I recognized that the only way out was to create systems and hire people, so that’s what I did over the next three years. I interviewed many high level real estate investors and was able to create scalable systems for every step from finding and financing deals to renovating and managing the property.

That way, I created a predictable and repeatable process that allows me to scale my real estate portfolio without being in the trenches of it all.

However, to make this work I had to learn how to attract A level players to my team.

One of the most important hires I made that allowed me to step away from my portfolio and focus on higher level tasks is the portfolio manager.

This person is overseeing all of my properties and managing all the boots on the ground (contractors and property managers who are in charge of visiting the site when needed). 

You can find qualified virtual assistant candidates for this role on platforms such as Dynamite Jobs, LinkedIn, & Indeed. 

And in most cases you’ll be able to find a great portfolio manager within the range of $6-$10 per hour from overseas countries. I’ve worked with virtual assistants from all over the world, and hands down my favorite is Eastern European Countries. 

From there, you’ll transition from being in the trenches to leading a team. 

This includes creating detailed SOPs for different aspects of each role, having team meetings on a regular basis, and building a team culture to cultivate growth.

But, at the end of the day, this whole process gives you the freedom to travel and live life on your terms without being tied to one location or property.

Besides, you’ll be able to invest in properties away from your local area, which will open up the gates to unlimited investment opportunities.

Step #5 – Repeat the Process

Lastly, once you’ve got the first 4 steps down, the only thing left to do is repeat the process.

And the best part is that you can repeat the BRRRR over and over again as many times as you want.

With a strong team in place, you won’t be held down by the burden of managing multiple properties…

Meaning you’ll be collecting passive income and growing your portfolio while actually working less.

However, there’s lots to unpack in every step I’ve outlined above.

And if you want to skip the trial and error, you can simply copy the systems and processes I’ve put together to scale my portfolio past $10 million in less than 3 years.

Click here to book a free strategy session with my team at rentalconsulting.com and we’ll map out your next best steps to help you scale your real estate investing business and remove yourself from the trenches.

In this article we’ll show you how to buy cash flowing rental properties with the goal of retrieving your investment money back within 12 months or less, so that you can use it to invest in the next property.

In other words, you’ll get to recycle the same investment money into multiple properties and snowball your portfolio.

We’ll go over:

  • The demographics to look for when selecting the best Canadian real estate market to invest in.
  • The two overarching categories that divide real estate investment strategies (something most investors don’t talk about often).
  • And the BRRRR investing strategy that is used to keep your money moving fluidly like a river, not stagnant like a pond. 

Let’s get started. 

How to Choose a Canadian Market & Property To Invest In

At rentalconsulting.com our students have bought over $50 million in real estate by focusing on finding undervalued properties, in an evergreen area, with over 50,000 in population and in a value market.

Here’s what that means:

1. Best Real Estate Market Type in Canada

There are two market types in real estate that play an important role here:

Vanity and the value market.

A vanity market is a city which is sought after for the pride and sense of satisfaction it brings to the residents.

In other words, people move to vanity markets because those are the “cool” places to live – think of Paris, New York & Toronto for example.

A value market, on the other hand, is a city which attracts its citizens not necessarily because of its ‘coolness’, but more so for its employment opportunities. 

We always invest in value markets because those cities typically have lower average purchase prices.

On top of that, value markets are not over inflated. Vanity markets typically are overinflated due to the brand and clout that comes with buying in that city.

2. The Ideal Market Size and Population Number

When it comes to the size of the market and the population, we look at it to be over 50,000 people within a 15 minute drive radius. 

The reason behind this is that cities or townships under 50,000 are volatile to the major employers shutting down. 

Over 50,000 in population leads to more stability and a wider variety of lenders being open to financing the property. 

3. Look for Evergreen Neighborhoods in the City

Before we start scouting for properties, we make sure to identify the evergreen/nicest areas in the city of interest.

These evergreen areas are typically the top three sought after places in the city.

What’s great about evergreen areas is that they tend to attract A+ tenants, who are the exact type of tenant you want to rent to. 

Areas that attract lower quality tenants tend to be risky for missed rent and property damages. Another large risk of investing in lower end areas in a city is that if the tenant demand drops, you might not be able to rent your property where tenants would prefer to rent in the nicer areas.

4. Pick Out the Undervalued Properties

Once you’ve narrowed down your choices to three evergreen areas in a value market, the next step is to look for undervalued properties you can purchase at a discounted price.

These properties typically look a little distressed (but not to the extent of being boarded up, burned down or left to rot).

And those partially distressed properties will allow you to force appreciation through the renovation. 

If you are buying newly renovated properties that are fully optimized, you will need to be prepared to wait a longer period of time (3-5 years) for the value of the property to increase enough to pull your money out and recycle it into the next. 

Wealth Creation vs Active Income

At the beginning of this article, we mentioned there are two categories of real estate investing strategies. 

Those are the wealth creation strategies and active income strategies.

Wealth creation strategies are those that allow you to build generational wealth by leveraging the appreciation of your property which compounds over time.

Compounded appreciation = wealth.

Essentially, the longer you hold onto the property, the wealthier you become.

Active income, on the other hand, makes you money today, but is not a high yield investment. 

With these strategies you are working more of a job by doing the active work. This time will not just be at the beginning of the investment, but the entire time throughout.

A good example of active income is flipping houses or wholesaling properties where you make a one-time profit and that’s it.

Wealth creation on the other hand will be where you hold onto the property to allow for mortgage paydown (i.e gaining equity) and compounded appreciation. This investment strategy will make more money in the long-term.

Wealth creation = money grows steadily for a long-term return.

Active income = exchanging time for quick cash in the short-term. 

What is the BRRRR Real Estate Investing Strategy

Now that you’re aware of the two different routes you can take with real estate investing, here’s a breakdown of the strategy we use to buy rental properties.

Keep in mind that we are focused on long-term wealth creation through real estate, meaning we buy properties with the goal to hold onto them and have the appreciation compound over time for the largest possible gains.

We are only accepting properties that hit a 20%+ return on investment to ensure it’s worth entering into a long-term engagement. 

However, we should note that we are also able to make income off these properties in the short-term through cash flow. So it’s not like we’re waiting for years to make a profit using this strategy, as the cash flow keeps the money rolling in month over month. 

How Does the BRRRR Real Estate Investing Strategy Work?

The BRRRR strategy consists of 5 stages:

#1 BUY: 

The first step of the process is to buy a distressed property that has deferred maintenance and has the potential to have rents increased. 

We typically look for properties that need a bit of TLC but are not too run down to the point where we wouldn’t be able to get financing for them.

#2 RENOVATE: 

Next up is the renovation project.

The goal here is for the renovation to force the appraisal of the property far beyond what you paid for it.

When renovating, we always look to do something unique with the property that would make the renters feel proud to live there.

This will make it easier to attract A+ tenants and even bump up the monthly rent.

However, make sure not to over renovate.

An example of over renovating is installing marble floors and granite countertops in a c-class area. 

The money you invest in the renovation will be basically wasted and will not be recouped in rent payments or upon the sale. 

#3 RENT: 

The goal here is to rent the property for a higher amount than it was previously rented for. 

If the renovation is completed strategically, this should not be difficult to do. 

Make sure to rent the units at what the new fair market rent is for your newly renovated property.

The appraisal of the property, along with your cash flow will be relying on it.

#4 REFINANCE: 

One of the benefits of the BRRRR strategy is that you get to refinance a property and recoup the invested money.

So that you can then reinvest that money into the next property, and the next one, and so on…

To refinance the property, you will have an appraisal completed to update the properties current value after the renovation and the re-rental. 

The difference between what it was worth before the renovation, and what it is worth now should be big enough that the bank gives you a cheque for the refinance. 

When you take on a BRRRR project, the ultimate goal is to get a large enough refinance cheque that it covers the cost of the downpayment and renovation on the property. 

This would leave you with a cash flowing property, with none of your own money left invested in it, and a tax free cheque from the refinance that you can use to invest in the next property.

#5 REPEAT: 

Once you get your hefty refinance cheque, you will certainly want to repeat the process!

Do not underestimate the power of the repeat here.

This is a type of buy and hold strategy, but allows you to recycle the same down payment onto multiple properties and ultimately snowball your portfolio. 

Bonus: Download the City Research Exercise

To get you started with your first (or next) rental property purchase, we’ve put together a City Research Exercise that you can download for free here.

Use this sheet to collect the data when you find the demographics for three separate cities. This will allow you to advance to the next step after knowing your market.

Whether you’re a seasoned pro or you’re just looking for your first real estate property…

We’ve put together a list of 35 real estate investing tips that will help you avoid costly mistakes and create profitable rental properties.

Let’s get started.

Our 35 Rental Property Investing Tips for Real Estate Investors

#1& Choose a location with high rental demand

When it comes to choosing a city to buy rental properties in, it’s important to find an area where vacancy is low, and the demand for rentals is high.

This way, you’ll have a steady flow of potential tenants when re-renting, and you won’t have to worry about your properties sitting vacant. 

We keep an eye out for cities with a growing population because that means more people will be in need of housing.

#2 Create a budget spreadsheet before purchasing the property

Having a budget spreadsheet helps us make smart decisions and steer clear of any unforeseen financial troubles.

By breaking down all the financial aspects, we always have a clear picture of what to expect and how to plan ahead.

This spreadsheet should include all the expenses associated with the property.

This means considering not just the purchase price, but also the closing costs, any renovations or repairs needed, ongoing maintenance, property management fees, insurance, and taxes.

By accounting for all these costs, we have a comprehensive understanding of what it takes to maintain the property.

On top of that, we always project the rental income and estimate any potential vacancies so we can assess the investment’s potential.

This helps us determine the cash flow and understand how much money we can expect to make from the property.

By taking the time to analyze these factors, we are able to evaluate the property’s profitability and set realistic expectations for ourselves.

#3 Analyze the potential return on investment (ROI) before making any purchase

A crucial real estate investing tip is to analyze the potential return on investment (ROI) before making any purchase.

Evaluating the ROI helps us gauge the profitability of a property and make informed decisions.

To analyze the ROI, we look into factors such as rental income, property appreciation, tax benefits, and potential expenses.

Then we calculate the expected appreciation ROI, equity ROI, and the cash on cash ROI to determine if the rental property aligns with our investment goals and criteria.

#4 Consider the costs of maintenance, repairs, and upgrades

Don’t forget about the costs of maintenance, repairs, and upgrades!

When you own a property, you’re responsible for keeping it in good shape and attractive to tenants or potential buyers.

So, it’s essential to factor in these ongoing expenses when planning the budget.

One thing newbie investors often forget is to set aside a portion of the budget specifically for regular on-going maintenance tasks.

This includes maintenance like appliances, landscaping, water leaks, lawn mowing, snow removal, and paint touch ups.

In addition to regular maintenance, it’s crucial to plan for potential major repairs.

Think about things like the lifespan of your HVAC system or when your roof might need to be replaced.

By estimating these lifespans and allocating funds accordingly, we’re able to prepare for those larger expenses when they inevitably arise.

It’s all about being proactive and avoiding any unexpected financial burdens down the line.

#5 Invest in properties with good cash flow

Cash flow is the name of the game here.

It all comes down to the net income you generate from the property after deducting all the expenses.

To make sure you’re on the right track, aim for properties that can generate positive cash flow.

In simple words, the rental income needs to exceed the expenses in order for the property to cash flow.

The positive cash flow ensures that you will not be in the position where you need to take money out of your pocket every month to keep the property afloat, while also showing the banks that the property is self-sufficient.

#6 Screen tenants carefully to avoid problematic renters

We always make sure to screen tenants carefully in order to find reliable and responsible renters to avoid potential problems down the line.

During the screening process, we do thorough background checks to get a sense of the tenant’s history.

This can include checking for any criminal records or past evictions.

Employment verification is another important step.

Requesting references from previous landlords is also helpful, as it gives us insight into their rental history and behavior as a tenant.

Financially qualifying the tenant is not to be overlooked. It’s also a good idea to verify their credit history to assess their financial responsibility and ability to pay rent on time, check a recent pay stub or tax submission, and even go as far as proof of funds for 6-12 months of rent.

By screening tenants diligently, you can significantly reduce the risk of rent defaults, property damage, and other tenant-related complications.

#7 Hire a real estate property manager or portfolio manager to handle day-to-day operations

We consider the goal of investing in real estate to be time and location freedom.

And to get there, you need to outsource the day-to-day operations related to managing a rental portfolio.

Property managers can take care of advertising vacancies, screening potential tenants, collecting rent, addressing maintenance requests, and handling any tenant issues that may arise.

By entrusting these responsibilities to a property manager, we free up your time and energy to focus on other investments or personal commitments.

You can hire a property management company, or keep the property management internal by hiring an individual that works for you directly.

Keeping the property management internal will save you money, and increase the quality control over the property compared to hiring an external company.

#8 Stay on top of local rental laws and regulations.

Make sure to stay informed about local rental laws and regulations.

These laws can vary significantly from one jurisdiction to another, and it’s crucial to understand and comply with them to protect the investment and avoid any potential legal issues.

Before you invest in a new market, make sure you understand tenant rights, eviction procedures, rent control regulations, security deposit requirements, and fair housing practices.

One way to make this easier is to work with a real estate lawyer who can help you navigate the complex landscape of rental laws and inform you of any potential changes in local regulations.

#9 Build a strong network of real estate professionals

Establishing connections with trusted professionals in the real estate industry is key.

We always look to expand our network of mortgage brokers, lawyers, realtors, accountants and contractors.

And the networking of real estate professionals can help to hunt down good property deals, access various financing options with favorable terms, and get their properties renovated at reasonable prices.

#10 Invest in properties with good resale value.

When you’re looking for properties to invest in, it’s not just about rental income.

It’s also crucial to consider the potential for a profitable exit strategy by focusing on properties with good resale value.

While rental income is important, you want to make sure that your investment will pay off in the long run and that you will not lose money when you exit.

#11 Look for properties that have the potential to appreciate in value over time

Property appreciation refers to the increase in value that a property experiences over time.

To identify properties with potential for appreciation, consider factors like the location’s desirability, proximity to amenities, ongoing infrastructure development, and overall economic growth in the area.

Keep an eye on market trends and consult with real estate professionals who have their finger on the pulse of the local market.

This will help you assess the potential for future property appreciation and make educated investment choices.

#12 Research the property’s history and ask for documentation of any past problems

Always conduct thorough research on a property’s history and ask for documentation of any past problems.

Typically this happens during the due diligence phase once you have an accepted offer on the property.

Request documentation from the Registrar’s Office at City Hall to confirm proper zoning of the property, occupancy permits and any outstanding work orders on file.

These documents can provide valuable insights into the property’s legal use and any underlying issues that may exist.

#13 Build good relationships with your tenants to minimize turnover and maximize rent income

It’s a win-win situation that can help minimize turnover and maximize your rental income.

When tenants are happy, they’re more likely to stay longer, reducing vacancy rates and turnover costs.

So, how can you build those strong relationships?

Communication is key.

Be responsive to your tenants’ concerns and address maintenance issues promptly.

Show that you value their feedback and take their needs seriously.

We always look to establish clear and respectful communication channels, making it easy for tenants to reach out to us whenever necessary.

#14 Make sure the property is up to code and meets safety standards

It’s not just a legal requirement, but also essential for the well-being of your tenants and the protection of your investment.

Make sure to identify any potential code violations or safety hazards that may exist.

Take a close look at the electrical systems, plumbing, structural integrity, fire safety measures, and accessibility features.

This will help you pinpoint any areas that need attention.

#15 Invest in areas of the city and properties that will attract the highest quality tenants

We always look for ways to make our properties more attractive to A level tenants.

These are tenants who are reliable, responsible, and pay rent on time.

It reduces so many headaches by increasing the quality of tenants. You could even say that it will increase the quality of your tenant problems.

So we make sure to buy in desirable areas within a city, ensure the kitchens and bathrooms are updated, include ensuite washer and dryers, and price the unit at top of the market rents to attract the best possible tenants.

#16 Use leverage to increase your returns, but be cautious and avoid overextending yourself

Consider using leverage (borrowed money, like a mortgage) to increase your returns, but do so cautiously and without overextending yourself.

Leveraging can be a powerful tool that allows you to control a more valuable asset with a smaller upfront investment, potentially boosting your returns.

However, it’s important to approach leveraging with prudence.

Take into account factors such as interest rates, loan terms, and your ability to handle the associated debt.

It’s crucial to avoid overextending yourself. We consider this to be working outside of your financial means. An example would be keeping 5% of your property portfolios worth in liquidity.

You want to ensure that you have the financial stability and flexibility to weather any unexpected challenges that may arise.

#17 Keep detailed records of all expenses and income

This might not be the most exciting part of real estate investing, but…

It’s crucial for effective financial management and maximizing profitability.

We always aim to maintain accurate and organized records of all our property-related expenses.

This includes things like property taxes, insurance, maintenance costs, repairs, and renovations.

We keep track of every dollar spent on the property, which gives us a clear picture of our financial commitments.

It’s equally important to document your rental income, including rent payments, security deposits, and any other sources of income related to the properties.

#18 Use technology to streamline property management and financial management tasks

Adding on to the previous tip, you don’t have to keep all your receipts in a shoebox.

You can use Google Drive or any of the bookkeeping software available online like Dext for organizing receipts, and Xero or Quickbooks for bookkeeping and reconciliation.

Consider using a property management software like Buildium to handle various aspects of property management efficiently.

A property management software can assist with tasks like tenant screening, tenant communication, rent collection, maintenance requests, and lease management.

Automating processes and centralizing information in one place will save you a lot of time and effort in the long-run as the portfolio scales.

#19 Regularly inspect the property to ensure it’s well-maintained

We always like to have a systematic approach to property walk around inspections so we can catch any maintenance or repair needs early on.

So we plan ahead and create a schedule for routine inspections, taking into account lease renewal periods or changing seasons.

This is not to be underestimated. Be proactive by doing an outside walk around of the property once per month, and a inside walk around (ie. mechanical and smoke detector check) once per year.

However, this isn’t something you’d want to put on your own schedule if you’re looking to build a passive income stream from your real estate portfolio.

We recommend outsourcing the regular walk around to your local maintenance team to free up your time.

#20 Stay informed about the local rental market and adjust rent rates accordingly

By understanding the dynamics of the rental market, you can maximize your rental income and stay competitive in the ever-changing landscape.

So, how do you stay informed?

One way is to make it a habit to regularly research and monitor rental trends, vacancy rates, and comparable rental prices in your area to get a solid grasp of the market demand and make informed decisions.

What we do is we outsource this to virtual assistants who can stay on top of any market trends or changes and inform us in time.

#21 Make sure you have adequate insurance coverage for the property

Insurance protects the investment from unexpected risks, including damage caused by natural disasters like hurricanes or floods, fire incidents, vandalism, and even liability claims.

To ensure you have the right coverage, it’s important to carefully review and select insurance policies that suit your property’s specific needs.

We typically go to an insurance broker who has multiple insurance policy options, compared to going directly to an insurance company who will just sell their own policy to you.

#22 Consider purchasing properties with a partner to share costs and risks

Creative financing options can open doors to buying unlimited properties. Specifically, joint venturing will allow you to combine resources with another investor and tackle larger and more lucrative investment opportunities.

Pooling your capital allows you to access properties that might have been out of reach individually.

But it’s not just about the money.

Partnering with someone who has complementary skills or expertise can be a game-changer in terms of dividing responsibilities and streamlining operations.

#23 Avoid properties that are located in areas with high crime rates

This one should go without saying but…

Safety and security should always be a top priority when considering an investment property.

Properties in high-crime areas carry a lot of potential risks.

Vandalism, property damage, and concerns about tenant safety will affect the value of the investment and cause issues in the long run.

From our experience, it’s just not worth it.

#24 Make sure the property is properly zoned for rental use

Zoning regulations play a crucial role in determining how a property can be utilized.

It’s important to ensure that the property aligns with the intended use.

Before finalizing your purchase, verify with the local zoning authorities that the property is legally permitted for rental purposes.

This step helps you comply with local laws and regulations, avoiding any potential legal issues or penalties down the line.

It’s always better to be proactive and make sure you’re on the right side of the law.

#25 Make sure the property has adequate parking options for tenants

Parking is a significant factor for many renters, especially in areas where street parking is limited or the population is dense.

Having sufficient parking can make a big difference in tenant satisfaction and retention.

Offering convenient parking options can attract quality tenants and contribute to a positive rental experience.

#26 Keep your personal finances separate from your rental property finances

It’s a simple practice that can make a big difference in managing your finances effectively, maintaining accurate records, and staying on top of your obligations.

One way to do this is by opening separate bank accounts specifically for rental property activities.

This separation will make it easier for you to track income and expenses accurately, simplifying your bookkeeping process.

We always aim to maintain clear financial records for each property separately to avoid confusion or miscalculations in the long run.

#27 Have a plan in place for handling tenant complaints and disputes

The key to maintaining positive landlord-tenant relationships is resolving issues in a fair and timely manner.

To ensure a smooth process, it’s important to establish clear protocols and communication channels for tenants to voice their complaints or raise disputes.

Aim to create an open and welcoming environment where tenants feel comfortable expressing their concerns.

We typically have our property managers handle any complaints or disputes, including documenting the details of the issue, investigating it thoroughly, and taking proper action.

#28 Attend local real estate networking events to expand your network

We always encourage our members to connect with like-minded individuals, industry professionals, and potential partners or investors who can contribute to their success.

Real estate investing events are a great place to meet experienced investors, real estate agents, lenders, contractors, and other industry experts who can share valuable insights, advice, and potential investment opportunities.

Attending these events will expand your knowledge base, expose you to different perspectives and strategies, and help you stay informed about market trends and opportunities.

You know what they say… your network is your net worth.

#29 Keep your personal emotions out of the decision-making process when investing in real estate

Emotions can cloud judgment and lead to impulsive or biased choices that may not align with your investing goals.

When evaluating potential properties or making investment decisions, rely on objective analysis, financial data, and market research.

Be aware of common emotional biases that can influence decision-making, such as “falling in love” with a property or being influenced by others’ opinions.

Stay grounded and focus on the numbers and objective criteria that determine the property’s investment value.

#30 Look for properties with the potential to add value through renovations or upgrades

As part of the BRRRR investing strategy, we always look for slightly distressed properties that need some improvements.

Doing this allows you to create a gap between the purchase price and the after repair value so you can collect a refinance check later down the road.

Besides, adding value through strategic renovations will make your property more desirable to A level tenants.

#31 Don’t rush into a purchase without doing proper due diligence

Now, one of the most common mistakes newbie real estate investors make is that they jump on the first opportunity that comes their way.

This is closely related to tip #29 where we talked about keeping emotions out of the decision making process when investing in real estate.

The thrill of making that investment often leads investors to rush with their decisions.

Make sure to take a step back and do proper due diligence before pulling the trigger.

#32 Always have a plan in place for marketing and advertising vacancies

Minimizing vacancy periods and quickly finding quality tenants is crucial for maintaining a steady rental income and maximizing the profitability of your real estate investments.

It’s always good to have a system in place for advertising your properties to reduce vacancy rates.

We typically outsource this to our portfolio manager who is in charge of crafting compelling property descriptions that highlight key features and amenities.

They are also responsible for responding to inquiries and scheduling property viewings, as well as promptly following up with interested tenants.

#33 Invest in properties that offer good cash-on-cash returns

Cash-on-cash return is a metric that measures the annual cash flow generated by a property relative to the amount of cash invested in the property.

To calculate cash-on-cash return, divide the annual cash flow (income minus expenses) by the initial cash investment and express it as a percentage.

This metric provides a clear understanding of the return on your invested cash and allows you to compare different properties and investment opportunities.

#34 Invest in multi-family for maximum profitability

Having multiple units means that you have multiple tenants, which helps spread the risk of vacancies.

If one unit becomes vacant, you still have income coming in from the other units, reducing the impact on your overall cash flow.

This diversification can provide a more stable and consistent rental income compared to properties with a single unit.

#35 Have a detailed lease agreement in place to protect your rights as a landlord

The lease agreement is a legal contract that establishes the terms and conditions of the tenancy, providing clarity and protection for both you and your tenants.

It is a crucial document that sets the foundation for a smooth and mutually beneficial landlord-tenant relationship.

Make sure to have all your expectations in writing and consult with a legal professional who specializes in real estate law to craft this document.

Conclusion

After years of buying and renting real estate properties, we’ve found that every single step of the process can be broken down into repeatable systems.

So once you buy your first rental, it should be really easy to replicate the process and secure a high return on investment without making costly mistakes.

If you want access to our systems and processes that have allowed us to buy over $50 million in real estate, schedule a call by clicking the schedule button on the website and let’s talk.