Portland Real Estate Investing Tips – Can You Still Earn Passive Income If You Start Later In Life?
Are you thinking about getting started with Portland Real Estate Investing but you’re in your 50s, 60s, or 70s, and you’re wondering if it’s still possible to earn passive income even though you’re starting with real estate investing later in life?
The good news is that it’s still possible to get started with real estate investing, regardless of your age, and what’s the best of all is that you can start building passive income during your first year of real estate investing.
In this article, I’ll share with you several things that you must know before getting started with investing in your first property.
Portland Real Estate Investing – Should You Invest In Single Family Or Multifamily?
As a new real estate investor, the first thing that you must decide is if you’re going to invest in multifamily or single-family properties.
Like any newbie, you may be asking yourself why multi-family vs. single-family? The answer to this question all relates to the ability to scale.
The reality is that you can earn passive income from Portland Real Estate Investing, especially from single family, but when your property is unoccupied, you won’t be earning any income from that property, this is why if your goal is to earn passive income that you can depend on, you should consider investing in a multifamily property.
Tips For Finding Your First Multifamily Property
Before you get started with searching for your first Portland Oregon multifamily property, here are several tips that you should follow during the process of searching for an apartment, duplex, or other multifamily property.
Tip #1 – Never buy at the top of the market – One of the first things that you never want to do when searching for a multi-family property, or any type of real estate, is to buy a property in any area that’s at the top of the market.
This is important because, if you buy a property at the top of the market, it’s likely that the value of the property will go down soon, so it’s best to take the time to thoroughly analyze a real estate market before you invest there.
Tip #2 – Search For Off-Market Deals – Off-market deals are usually the ‘Holy Grail of real estate’ investing because these are properties that have not been listed for sale yet and there’s usually significant upside with them as well.
The key to success with finding Portland Real Estate Investing off-market deals is to establish relationships with real estate agents, contractors, and other service personnel in the area where you plan on investing in real estate.
Having a team of Portland people ‘on the ground’ who can alert you of potential properties that you may be interested in purchasing will work to your advantage. How? Someone from your ‘team’ may inform you of a multifamily property that may come up for sale in a few months and you would have the ability to contact the owner of that property before they list it.
Tip #3 – Avoid Declining Markets – Another tip to keep in mind when searching for multi-family properties is to avoid investing in declining real estate markets. This is important because, even though a city may still look like an ideal place for investing in real estate, on the surface, as long as it’s having problems with income or population decline, it’s only going to be a losing proposition for you.
Tip #4 – Avoid States With Lots Of Government Overreach – During the process of searching for your first multi-family property, it’s also important for you to use caution and avoid investing in states that have been known for government overreach.
Some examples of states that have government overreach include New York and California, where landlords have suffered significantly in recent years due to anti-landlord policies.
Instead of investing in states with government overreach, it’s best to focus on investing in areas of the United States that have little Government overreach, and are very friendly to business.
Tip #5 – Focus On Due Diligence – Last of all, but most important, another thing that you want to do when searching for a multi-family property is to focus on due diligence.
If you’re unfamiliar with the term due diligence, this means taking the time to thoroughly analyze a property before investing in it.
Some of the things that you should analyze include researching the property’s rent roll, real estate tax bills, leases, and other expenses that the property has every month.
You should also have each unit in the property thoroughly inspected, including common areas, utilities, and the exterior of the property as well because you want to have confidence that there will not be any deferred maintenance in the property that will have to be resolved.
How To Earn Passive Income From Multifamily Real Estate Investing
And now we get to the fun part, how to earn passive income from multifamily investing.
After purchasing your first multifamily property, the key to success with earning passive income from that property is to hire a property management company.
Your goal should be to hire a Portland Real Estate Investing property manager immediately because this is what’s going to save you the time, money, and hassle of having to manage that property yourself.
Many investors make the mistake of investing in properties that they ultimately end up managing themselves. Don’t let this happen to you!
Once you invest in a property, your goal should be to hire a property manager immediately so that you can focus on continuing to live your normal life without the day-to-day stresses of managing a multifamily property.
Contact Rent Portland Homes – Professionals
At Rent Portland Homes – Professionals, we specialize in property management for the Portland Oregon area.
Once you invest in your first PDX rental property, don’t waste time trying to manage that property yourself, let us manage it for you.
To learn more about the local property management services that we can offer you, contact us today at (503) 447-7735 or click here to connect with us online.