You want to replace your 9-5 with rental property income, but do you have a plan? In order to successfully achieve this goal, you need a clear set of actionable steps to get you started.
Develop a Real Estate Business Plan
Before jumping into real estate investing for the first time, an excellent exercise for aspiring real estate investors is to draft a business plan. Knowing what you want to achieve with real estate is key to being successful.
How many properties would you need in order to replace your 9-5 income? You might not have a concrete number yet, but at least have an overall idea of the minimal amount of money you’d like to make from real estate investing.
Another question to ask yourself is if you’ll hire a property manager right away or manage your properties yourself.
Pro Tip: As soon as you can afford to, investing in professional rental property management is the quickest way to scale your business. You’d be surprised how much of your time can be eaten up by tending to properties, and this valuable time could be spent on growing your business and acquiring new properties.
If you are going to manage your own rentals in the beginning, using software such as a CRM (Customer Relationship Management) to keep track of current tenants, their leases, and new tenants your interview will keep you organized. You should also be prepared to create files on your rental properties, keeping notes on repairs and future maintenance projects.
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