6 Boston Property Management Tips on How to Start Investing in Real Estate

Updated September 27, 2022.

Ready to get into real estate? Many people are looking to get into the real estate industry and now is a great time. Rental properties are one of the more popular ways to make money as an investor, but how do you start investing in rental properties? What does it take? How much money is involved? 

The best property management Boston offers provides some answers in this blog post. Today we discuss six tips that will help get you started in the world of real estate investing!

1. Do Your Research

One of the quickest shortcuts to real estate investing success is to learn from those who have come before you. There are plenty of books available on real estate investing. Reading real estate investing books from qualified experts can help build your knowledge base and set you up for success. As part of your research, touch base with a Boston residential property management company to see if they can recommend resources for study. 

Also, check out blog posts and other online forums where landlords discuss issues and seek advice, including these next few aspects of investing. 

Determine If You Are Landlord Material

Do you have experience working with a toolbox? What do you know about drywall repair or toilet clogs?

Property owners have to decide if they want to deal with the hassle of the day-to-day issues of being a landlord or if outsourcing is a better fit for their goals. For example, if you think you might want to be a landlord but aren't a handyman, you could hire a property manager to care for maintenance issues and other items from a landlord's to-do list.

Learn How to Secure Financing

Are you up-to-speed on how to finance an investment? The down payment for an investment rental property is generally higher than that for a homeowner's primary residence. Investment mortgages also have different approval requirements. Research your options and work with a property manager to find the best ways to finance your first (or next) rental property. 

Where are the Hot Real Residential Real Estate Markets?

Whether you live here or out of state, research the hottest markets, especially if you live somewhere real estate is lagging behind the national average. Even if you don't live in Boston or Eastern Massachusetts, investing here is easy (and profitable) with the right property management team!

Look for a real estate investment in an area with low property taxes, a good school district, and many amenities, such as malls and restaurants.

2. Take Care of Personal Debt First

Some real estate investors may use debt as part of their portfolio investment approach, but the average person should stay away from it. If you have student debts, outstanding medical bills or children who will attend college soon, owning a rental property can wait until your personal finances are in order. 

3. Pick A Real Estate Investing Strategy

While many investors specialize in a single property type and invest heavily there, others will inevitably include several different property types in their portfolios.

For example, many investors begin by investing in single-family homes since that is often the simplest approach to acquiring fundamental knowledge. Once you've mastered the fundamentals of investing, you may apply them to greater and more expensive ventures, like commercial properties, multifamily rentals, or other types of real estate.

Also, look at different types of business entities for your real estate investments. Talk to an attorney about whether a sole proprietorship or a Limited Liability Corporation (LLC) is right for you. 

4. Find a Great Rental Property

With some background knowledge and a strategy to invest in real estate, it's time to look for great deals and find a good property! Run the numbers and make an offer when you find an investment that fits your goals. Work with a property manager to hone your skills for identifying good properties and closing good deals. 

5. Calculate Estimated ROI

What do we mean by "run the numbers" when analyzing a potential deal? Successful investors know to estimate the potential return on investment (ROI) before buying a property. Including ongoing expenses in your calculations, like maintenance costs, insurance, possible homeowners' association fees, property taxes, and monthly expenditures for pest control and landscaping. It's also a good idea to check with a property management company that can help to figure your ROI.

6. Find Your Network

Part of being a successful property owner is putting together key team members to help every step of the way. In most cases, property owners quickly find out that doing it all on their own is challenging (and less profitable). Start assembling the people who will help with and be involved in the real estate investment. Your network should include a trusted:

• Real estate agent

• Boston property manager

• Mortgage lender

• Insurance agent

• Accountant

• Real estate attorney

Real estate is a people business! Be sure to surround yourself with the right people and experts to build long-term success.

The Right Property Management Company Is Crucial to Investing Well!

As you learn more about how to start investing in real estate, make sure you partner with the right Boston property management company sooner rather than later! CHARLESGATE Property Management is the best local resource to help new and seasoned investors find excellent properties and maximize returns. Reach out to learn more about our property management services!