Did you know the interest charged in financing your investment property could be tax deductible? A financial planner or accountant can help guide tax-efficient strategies, including how to best structure the purchase of a rental home.Seek out communities where there is good employment and population growth. This will ensure strong market rents and continued demand for your home.
Have a contingency plan—liquidity will be important. Rental income doesn’t always cover the costs. What if you don’t have renters? It’s prudent to have cash put aside to cover at least six months of rent. Who will screen your tenant? A property management company can handle your tenant searches, interviews and background checks. Alternatively, there are many online tenant screening services available to landlords that help you verify a tenant’s worthiness.