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How do you start your own real estate/ rental home business?

I live in Texas and have been wanting to get into real estate. I have met people who rent homes out and make tons of money. We have a lot of natural gas workers in the area and they pay top dollar to rent homes. Anyways, how does one get into this? Do I need schooling? Any info would help, thanks!!!

Public Comments

1. you can advertise, http://www.sellingppp.com/s.cgi?ppp=1214860062
2. Chances are in Texas you need not just a real estate license but a brokers license which means you have been activiely selling homes for 3 years or more and past a test. You could hire someone that is already a broker to be "the broker of record" and you could own the business. They would be legally responsible for all real estate transactions. If you own the property you do not need this.
3. You need to start by buying property to rent. No you don't need a license but you need to do your homework or you can lose a lot of money. Renting property isn't as easy as it looks, you get calls at all hours to fix things and if they don't pay rent on time you need to evict them etc.
4. We own 3 rental properties and I can tell you this: it is a TON of work sometimes, and all the costs/repairs come out of your pocket. Definitely do your homework and research the area you are interested in. Find out what the value of the homes are, what they are selling for, and what the average rent is. Also know that you could get really hit hard with property taxes, insurance rate increases, etc... not to mention that you will also be taxed for income! Save all your receipts and keep a monthly log of all expenses/income. That will save you lots of headaches. Good luck.
5. No license required to be a real estate investor/landlord. You should however get educated on the subject. A buy and hold strategy is the best in the current market and you can create nice cash flow each month (particularly in Texas, that is where I invest) and the tax advantages are endless. I suggest you find a mentor in the business or get a reputable group on your team to work with. This is in addition to educating yourself. Read books, scan the web, and join real estate investment groups. Be careful not to fall prey to their overpriced products/boot camps they all try and sell. Most of them are not worth the money and their intent is to up-sale you more products/services rather than help you become an investor.
6. The first thing you need to do is to examine your own financial situation. Can you afford to carry an extra mortgage in the event that you have vacancies. You will have a better view of what home prices are in the area you are interested in so you can use a mortgage loan calulator (found in a lot of websites) to determine what your costs would be. In preparing yourself for the experience of being a landlord, look at the perspective house and ask yourself, is the house ready to rent? If there are improvements required am I able to do the work myself? Otherwise the cost of improvements need to be factored in. is the house in a fairly desireable location that will not see a lot of turn over. (you can check the local vacancy rate of a particular neighborhood on-line as well). Once you have found something you think you can tackle, you will need to find out if the return owrth the price. To find that out, this website will provide you with information on variables in evaluating investment properties. http://www.rentalsoftware.com/Cash_on_Cash.htm You wont need to buy anything but the defintions in this site is helpful in understanding the nuance. As others have mentioned, keep good records of your income and expenses. I good rule of thumb is to follow the IRS schedule K-1. This form lists out the most common expense categoreis that are itemized out in the gross rental income. A good accountant is important as well since they will amoratize the depreciatioon of the property over 27 years. Thus you get even more deductions. There is a luandary list of other things you need to know like landlord/tenant laws and Leasing that you will need to understand. Remember that if you decide to go into this, dont expect to make money in the first couple of years, usually the start up cost and catching up on deferred maintenance and improvements will usually eat up any profits you may see. Good Luck
7. You do not need a license if you plan to buy and rent out property that you own. If you plan to manage rentals that you do not own you need a Real Estate Brokers (not agent) license.