Building Wealth through Rental Income : Where do you start?

One can only wonder what the world would look like if along with simultaneous equations, high school students were also taught how to build financial freedom. You know, just in case finding ‘x’ did not pan out on the career front. (No offence to the mathletes out there)

Financial coaches, authors, and gurus worldwide speak about creating passive income or building an additional stream of earning, where one needn’t rely on a single pay-check or employment opportunity to live and save for the future. If a global pandemic and the current financial markets have shown us anything it is that we live in a volatile time and security needs to be planned for rather than hoped for, which brings us to the topic of rental wealth.

Generations have spoken about buying land because ‘God wasn’t making any more of it,’ and this logic has survived the test of time. If planned around correctly, real estate is and will continue to be one of the soundest investments a person can make. Although we are not the aforementioned financial gurus we referred to, we definitely know a thing or two about investment real estate and hope to share a few tips that help start you on your journey to building wealth through rental income.

TIP 1: ALL RENTALS ARE NOT CREATED EQUAL
Choosing the right rental opportunity is no easy task and we recommend speaking to a property management professional first so you can better understand the rental market. An experienced rental manager will ensure that you are up to date on rental trends, advise on hot neighbourhoods, share what style of unit moves quickly and even perform assessments that give you an idea about your expected return. All this before you even dip your toes in! At Sycamore Property Management, our professional rental assessments take you through the current market, comparable units and recommended listing strategies so you know exactly what to expect should you decide to list a particular rental.

TIP 2: WHAT MAKES THE WORLD GO ROUND?
Having a clear understanding of your finances is key to any investment decision. Once you have a general idea of the rental market it would make the most sense to speak to your bank or a mortgage professional that can walk you through the process of buying or financing your rental property. Professionals in this field would help you understand what you can spend, the cost of financing and the required return on investment you should aim at for it all to make sense. This conversation would now tie seamlessly into the understanding you already have of the market. Good thing you already spoke to property manager, right?

TIP 3: PAY ATTENTION TO THE BUSES AS THEY GO BY
An experienced realtor is a critical resource and partner on your journey to building rental wealth. Now that you are aware of the choice areas, viable rental types as well as your financial bandwidth it would be time to speak to a real estate agent who is a neighbourhood specialist and can get to work by finding you great deals that fit your criteria and budget. Their due diligence in ensuring that you are protected through the purchase process can go a long way towards the property’s financial health so find yourself a realtor that takes their time and truly understands what you need.

BONUS TIP: GET IN TOUCH WITH SYCAMORE PROPERTY MANAGEMENT
So, it’s happened! You’ve made the leap and are now officially a real estate investor! The logical next step is to protect that investment and maximize your return by letting a professional handle it. When you decide to hire Sycamore, you can rest assured that your investment and your tenants will be taken care of. Our expertise and service level remain unmatched in the industry and is the reason our clients trust us with their rental homes. Connect with us today so we can discuss building and protecting your rental wealth.