By Brad Sumrok

Some of the top questions to ask when evaluating what type of buy-to-rent strategy fits best for you and some of the answers that may be helpful to your strategy:

How to evaluate if a buy-to-rent strategy is right for you

Q. Does single-family housing or multifamily housing fit better in a long-term buy-to-rent strategy?
how to evaluate if a buy and hold real estate investing strategy is right for youA. That is a question only you can answer after evaluating your financial situation and your overall investing goals.

Educate yourself about the differences and advantages of investing in multifamily vs. single-family and learn the variations in how each is undertaken.

Q. Are there different financing considerations in single-family vs. multifamily?

A. Financing does not change until you get above four units (a fourplex), which is still treated for financing purposes similar to a single-family residence. Once you get above four units, financing changes to a commercial model, so you need to educate yourself on those differences and see which best fits your goals.

Q. How do you get started in buy-to-rent?

buy to rent for real estate investorsA. Identify and build relationships with the right partners who can help you put together the various elements you will need, from finding the deals to financing the deals and then helping you protect your investment and lower the risks. We are one of many companies that provide training, education and mentoring to help our students.

Q. How active do I have to be in the investment? I have a full-time job right now.

A. Passive investing is a very attractive option for many investors who have little time, expertise or appetite to manage an investment on their own. The owner and beneficiary of a self-directed IRA account can participate as a passive investor in a qualified “arm’s length” transaction.

Q: I do not have a lot of cash. Is there still a way I can get started?

A: You can set up a self-directed IRA account so you will have funds available when you find the appropriate investment. This type of investing takes education but can be very rewarding. Perform your due diligence research on self-directed IRA investment opportunities. To be safest, seek professional guidance from a tax or legal expert, as IRAs are strictly regulated.

About the author:

After 17 years in the corporate “Rat-Race,”in 2002 Brad Sumrok started as a real estate investor with no previous experience. After three years, he retired from his corporate job at age 38 with over $1 million profit from his first two apartment deals.Since then he has been mentoring investors interested in investing in apartments.

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