2022 Landlord Guide Visit us at www.abodeteam.com
Finding the Right Agent The first step in your real estate investing journey is finding the right real estate agent. As an investor, you need a realtor that is familiar with investment properties, aware of market trends, and is comfortable with serious negotiating. This is a crucial part of the process, choosing the right realtor could be the difference between a great deal, and bad investment. Click here to take a look at the other top skills and qualities to look for.
Financing an Investment Property When it comes to financing, there are many options including: FHA, Conventional, Rehab loans, Portfolio loans, and more. Unlike conventional loans, many lenders require 25% down to purchase an investment property. Rates can also be a little higher. if you are willing to live in your multi-unit you may qualify for a different rate. Speak with a local lender to determine which lending path is the best fit for you. Maine has these programs for owneroccupied properties.
The BRRR Method B uy a property that has an added value component that you can bring to the table. R ehab- fix up the property and add value to it R ent the property- (short-term rental, mid-term rental, long-term rental) R efinance the loan to pull out most, if not all of your money out. R epeat- Do this process over and over again to build wealth
Finding a Cash-flowing Investment Let’s start with the basics, finding a property with good cash flow. A cash flowing investment property is one in which the rents cover more than the expenses and mortgage, leaving you with income at the end of the month. Click here to learn more about how you can find a cash flowing property.
1031 Exchange 1031 exchanges are used to defer capital gains and build wealth. They allow you to swap one real estate investment property for another. Click here to learn more.
What is an “ADU”? Starting July 1, 2023, any Maine property that is in a residential zone can qualify to have an Accessory Dwelling Unit added to the lot. An “accessory dwelling unit” means a selfcontained dwelling unit located within, attached, or detached from a single-family dwelling unit located on the same parcel of land. The hope is that ADUs will provide affordable rentals for folks who might otherwise be priced out of the city, helping alleviate sprawl. C a n yo u a d d a n A D U to yo u r h o m e? Follow this link to check in your town.
Where ADUs are Allowed
Where Single-Family Homes are Already Allowed (Existing Home) +1
+1 +1
Single Family Home
1 Unit Added
1 Unit Added
Additional unit added within the existing structure
+1
Addition of an ADU attached to or within the existing structure
+1
1 Unit Added
Addition of an ADU detached from the existing structure
+1
+1
2 Units Added Additional unit added within existing structure and an ADU attached or within the existing structure
2 Units Added Additional unit added within existing structure and an ADU detached
Not Allowed: 2 ADUs or 2 units within existing structure
Formulating Your “Buy Box” A “buy box” is a tool used by real estate investors that helps determine specific goals, and criteria for purchasing an investment property. Once you have formulated your buy box you can use it as a filter; only the properties you want will flow through. Click here for a great resource on making your own buy box!
Strategies for Finding Great Tenants The most important part of being a landlord is having great tenants. Having reliable, tidy, and responsible tenants will help you with future turnover and to avoid excess debts. Finding the “ideal tenants” is a journey in itself. Here are a few tips to get started and set your property up for success!
Property Management or DIY? You’re a landlord, now what? It can be a challenging decision whether to hire a property management company, or do it yourself. Managing your own properties takes time, effort, and urgency when immediate repairs are required. Three main responsibilities of managing a rental property include tenant management, property maintenance, and financial accounting. Landlords and property managers should know how to diplomatically handle the leasing process and understand state and town laws. Are you the right person for the job, or should you look at hiring a property manager for your investment properties? Click here to learn more.
Considering AirBnB? Short term rentals can be a great source of income, however they also come with a long list of responsibilities as well. Think about managing reservations, turnover clearnings, regular maintenance, and more. Click here to see other restrictions. We advise to check with your local authorities to find up-to-date restrictions.
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