Buying a rental property is a great way to bring in additional income. But just like any type of real estate investing, there are risks involved. If you are not careful, you may end up buying a rental property that is not what you thought. In turn, you could end up paying the mortgage out of your pocket with no rental income coming in. Is this a situation that you want to deal with?
To increase your chances of success when buying a rental property, you will want to hire the right real estate agent. The question is: what does the right agent look like? Here are three tips for hiring an agent when buying a rental property.
1. Your agent should have experience in the area that you are buying. If you want to buy a rental property in Miami, you should find an agent that is familiar with that particular area. In other words, an agent from Palm Beach is probably not going to do you any good.
2. Is the agent knowledgeable? This is very important no matter who you are. That being said, new rental property investors need this even more. A knowledgeable agent will be able to answer your questions, and if you allow them, they can even steer you down the right path.
3. An agent that can tell you about past trends and future expectations is worth a lot of money. Once again, this goes along with an agent that has experience in the area which you are buying. By looking at the past and talking about the future, you will be able to conclude which rental properties are best for you.
All in all, if you are buying a rental property a real estate agent is not going to cost you a dime. But remember, an experienced, knowledgeable agent is what you are looking for.