Growing up, I always associated someone having a bunch of rental properties with being wealthy. After all, it’s a bit different than having a gigantic balance in your investment account. There are plenty of “stealth” millionaires. However, it’s a bit harder to hide the fact that you own multiple rental properties, with paying tenants.
I was listening to a financial talk show the other day. One caller, who was offering advice, claimed to have $22 million worth of rental properties. Wow! With real estate remaining an incredibly valuable investment, it’s no wonder that many people want to get into the landlord business. That includes me — I’ve always wanted to get into real estate investing. It’s much different than the stock market. When stocks go down in value, there’s always that fear of losing everything. On the other hand, owning physical land or brick and mortar buildings seems safer, in some way.
Do you want to be a landlord? It’s not as simple as sticking a “For Rent” ad on Craigslist and waiting for the rent money to start flowing in. Here are some steps you should definitely take before you list your rental and sign that first tenant.