How to manage your own investment properties!

Managing an investment property can be a daunting task but with the right strategy and preparation, it can be a rewarding and successful venture! Here are my tips I've learned through my own investment experiences, to help you manage your investment property:

• Learn as much as you can about property investing prior to taking any step forward. Get a couple books on this topic or consider checking out the website Bigger Pockets to learn more about the different avenues you can take in this industry.

• Have a clear plan: Before you invest in a property, create a plan that outlines your goals, budget, and timeline.

• Choose a location: Make sure the location of the property is suitable for your investment goals. Consider factors such as growth in population, access to public transport, and proximity to local amenities and attractions. If you plan to rent to students, make sure to check any city rules/regulations in renting to students.

• Decide if you want to hire a property manager: A good property manager will help you manage your property in an efficient and cost-effective way. However make sure to do your research and find a reliable and experienced property manager who can handle the day-to-day operations of the property so that you are less bombarded with renter needs. In Minneapolis typical property management fees are around 8-10% of the monthly rent.

• Stay up to date with maintenance: Ensure that all repairs and maintenance are taken care of in a timely manner to avoid any potential problems. Always keep a portion of your rental income and place it into a capital expenditures account so that you have funds if something unexpected comes up in the future. I typically recommend taking 5% of your monthly rental income each month for this.

• Monitor finances: Make sure to install a program like Turbotenant or Quickbooks so that you can keep track of your incoming and outgoing expenses as well as rent. You will also want to make sure to track all of your repairs and upgrades to the property for when tax season approaches.

• Consider tax deductions: Investing in a property can offer various tax benefits. Make sure you understand the tax implications of your investment and take advantage of any deductions that may be available. Always make sure to ask a tax professional on how you can capitalize!

• Consider hiring a lawyer: When drawing up leases and having tenants sign these legally binding documents, its good to have another set of eyes look at them. It is also good to have a relationship with a lawyer who has experience in property investing/management so that if you get in a difficult situation you have proper representation.

By following these tips and staying organized, you can manage your investment property in a successful and rewarding way. Please reach out to me with any questions, I am always happy to brainstorm different investment opportunities or ideas!