In Part 3 we will dig into the delight of buying and selling rental property with you guessed it—systems! This is my bread and butter, the part of real estate investment that I really enjoy. While the other aspects of real estate ownership are necessary and even fun, I love buying and selling. Let’s take each of these in turn.
What is involved in acquiring rental properties?
1. Evaluating the opportunity
2. Getting it under contract
3. Doing due diligence
4. Securing financing (if applicable)
These steps are true for any type of real estate acquisition. The content of our present material, however, is more catered toward residential, income-producing properties. The amount of income that comes from a certain property depends on valuation, which not only includes the value of the actual real estate itself but also the business that's generated by the acquisition. That means the rental property itself and the cash flow that’s generated by that business from renting it out.
After you’ve acquired a property, you can go into the operation, renovation, and potential selling of an asset, depending on your goals. This only happens efficiently, however, if you’ve got systems in place.