First Rental Property

If you are a student of real estate investing, you will hear the term “Real Estate Empire” a lot.

Successful real estate investors who have managed to build their own real estate empires have often done so by buying properties in the same location.  When I refer to location, I am referring to a specific City or Town.

This is a smart strategy as it helps to simplify your life.

For example, if you manage to assemble a portfolio of 10 rental properties in the same city, you will more than likely have an easier time managing this portfolio than if you owned 10 rental properties in 10 different cities.

If you own properties in 10 different cities, your life is going to be more complicated for sure.

Not only will things be more complicated for you, you will also need to have a lot more specialized knowledge in order to succeed.  Here is what I mean…

For instance, you will need to know the market rent and market values of all 10 of  these cities, as opposed to just 1 city.  You will have to stay up to date with all of the market information for all 10 cities.  As things change, and as market rents increase or decrease, you better be up to date on what the rents have changed to.

After all, if you don’t know the market rents, how do you know if you are renting out your property for the right price?  If you don’t know the accurate market rent, you could very well be renting your property out for $200 or more less per month than what you should be renting it for.

Also, if you do not know the market value of the properties, how do you know if you are buying the property for the right price?  If you don’t know the market value of the properties, you could easily overpay 20, 30, 40 thousand or more for the property than what you should be paying.

On top of it, if you are having your properties professionally managed, and if they are all in cities far apart, you may need to know and deal with up to 10 different property managers!  That is a large number of property managers to build and maintain relationships with.

Try to keep things simple by building your real estate empire in the same location.

Years down the road, when you look back upon your efforts, you will thank yourself.

Best Regards,

Neil Uttamsingh

FirstRentalProperty.com

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pps: Also, don’t forget….If you need help buying your first rental property check out REIN Live Events and REIN Home Study Courses.

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