The document provides advice for investors navigating the rental property market. It recommends keeping goals in mind such as desired income level. Investors should understand their finances including income, expenses, taxes, insurance and maintenance costs. The document also suggests considering neighborhood quality, looking for properties with potential near amenities, keeping options open by exploring different markets and property types, avoiding overpaying due to low interest rates, renovating kitchens and bathrooms to increase rents, and thoroughly screening tenants.

1. Navigating
the Rental
Market
By
Domenick
Tonacchio

2. Keep your
goals in
mind
• Investors should know
why they’re in the
rental market and what
their goals are!
• If you want to live
passively off the rental
income, then you
should know how much
income you’ll need

3. Straighten out your
finances• Knowing your exact income
and expenses will help you
get loans and buy more
property
• Learn financing and talk
with mortgage brokers so
you can buy the property at
a good price
• Include taxes, insurance,
maintenance, management,
utilities and the reserves for
any major repairs that could
come up

4. Think about the!
neighborhood
• Properties in bad
areas require you to
be a more active
presence to make
sure things operate
smoothly
• Properties in nicer areas are
more expensive, but also mean
higher rents and more regular
tenants

5. Look for
properties
with
potential
• Properties near schools, expanding retail,
trendy points of interest, local
transportation or surrounding malls tend
to have great potential

6. Keep
your
options
open
• Consider smaller markets within
secondary markets!
• Look at how well the house was built!
• Compare how much people are
paying in the neighborhood for rent!
• Look at prospective tenants!
• Think about additions you can make
to reasonably increase your rent

7. Don’t be
lured by
low interest
rates • If a property costs the same as when it
was built, then it’s not worth the money!
• You want your home to have enough
value to get the returns you want when
you sell

8. Renovate
the kitchen
and
bathrooms
• A higher-quality
kitchen and
bathroom could
increase the rent!
• Make sure you
know how much
renovations cost

9. Screen
tenants
• Have an application
progress and use
services to look for
civil and criminal
lawsuits, recent
collection activity
and credit scores!
• The ideal tenant a
good job, some
savings and regularly
pays their bills