BUYING RENTAL PROPERTY
Houston is a very good area to own rental property. Less than half the people in the Harris County own their own home. That gives investors a huge amount of potential tenants. Rental properties are the favorite investment for many of my investors.
The average rents collected allow the investors to make a 20% return on their investment. The ability to have a tenant year after year is the key to maintaining a profitable investment. The property will need to be maintained in order to lease quickly and to maintain its value. Then 20 years from now the mortgage will be paid, and the property will be sold for a large profit.
Many times we’ll have the home rented, literally, right after the paperwork’s been done. Situations vary, but that happens a lot. We put the home on the market the minute the paperwork’s done. Necessary repairs are started immediately after closing. Typically repairs take no longer than 2 weeks.
Many of my investors never see the property they purchase. With the Internet, it makes things easy. We can handle all of our documentation online, via PDF files. Pictures, inspection reports, and repair estimates are prepared promptly and emailed quickly. So there is no “fear factor” involved. It’s as if you are right here, in my office. I and my staff work to assemble all the investigation into the properties necessary. All properties are investigated thoroughly. To make sure that you pick the right properties, in the right neighborhoods, at the right price, and with the right rate of return. Nothing is left to chance.
That’s the type of inside information I give to my clients, that’s what gives them a distinct edge over the other investors in Houston. Here is how a home is selected for investment. The investor has narrowed a list of properties to 8 homes. I would go and look at these eight homes, and the surrounding subdivisions. The rental rate on each of those subdivisions would be calculated. Then we would look at the purchase price to be paid for the home. The home to buy will be the home costing the lowest with the highest rental rate. That’s what it’s all about. It’s the bottom line. We’re not here to beautify Houston. It’s to make a return on investment. That’s what I do – I use my knowledge and experience to get my client the best return on his investment.
I do provide limited property management services. My goal is to cut down on the maintenance fees for my investor clients. Since most of the homes purchased are newer there really is no need for monthly fees. So you don’t NEED me to maintain and manage your rental property. As a courtesy I help lease the home for the first year at no cost to my client. I am always on call to serve my clients by arranging for repairs and maintenance needed to maintain the home. Concierge service for investors is an important part of what is offered by Bill Edge..