1. Buying Rental Property
   1. Location and Features
      1. Where a rental property is located and its demographics will influence rent levels and renter interest, number of competitive properties.
      2. You need to consider features that will attract renters in a given location.
         1. Number of bedrooms and baths
         2. Yards, particularly fenced backyards
         3. Garage and/or other parking
         4. Proximity to shopping, freeways, schools, etc.
         5. A/C and heating (aka central or other)
         6. Unique features that can be leveraged vis-a-vis competitive rentals
      3. You need to consider some basics related to multiple unit properties
         1. Who's responsible for utilities like trash?
            1. Will you need to purchase a trash bin? Centralized recycling center?
         2. How is parking to be managed?
         3. Who will manage/pay for maintenance of common areas/landscaping and lawncare?
         4. Is there a Home Owners Association?
            1. You need to know the related costs.
            2. If so, you need to acquire a copy of the CC&Rs to understand the parameters of that responsibility.
   2. While a prospective property may look like a great deal on the surface (i.e. foreclosed properties), you need to conduct an in-depth inspection in order to assess if it will require an additional investment in repair/replacements in order make it move-in ready. 
      1. You will need to consider not only the cost of any required repairs/replacements, but the time it will take to prepare the unit(s) for move in.
      2. You will need to account for and afford the time delay repairs will require; you need to understand the impact repairs will have on your timetable for acquiring tenants.
2. Managing Rental Property
   1. In contemplating how much involvement you want to have in the management aspect of income property ownership, consider the following:
      1. In the event you hire a third-party to manage your asset(s), and assuming they are responsible, you are wise to remain anonymous to renters.
         1. If you make a unilateral decision to advertise your rentals because you believe you have more flexibility with regard to background checks, including credit rating, consider the following:
            1. You may be sending mixed messages about your property and its management.
            2. You could live to regret accepting renters that don't meet certain minimum requirements.
            3. Once renters have your name and contact information, believe us they will use it.  When property issues arise, the tenants will call you.  Are you prepared to take 4 am emergency phone calls?
   2. Rental Property Appliances
      1. Buying used major appliances has an appeal to many income property owners, but this approach has potential flaws. You need to consider how much your time is worth relative to such logistical requirements.
         1. It takes time to peruse sites like craigslist to find what you're looking for.
            1. Contrast this to buying new from reputable and competitively priced retailers.
         2. You will likely be responsible for pick up, delivery, and installation of the appliances.
            1. Most retailers offer free delivery and even pick up of your broken appliance.
         3. Used appliances normally don't come with a warranty and you may find yourself replacing something sooner than later and starting the cycle again. 
            1. New products come with a warranty, so in the event there is a problem with an appliance, you can have the repair or replacement handled by the store, thereby saving you the time and energy it would have cost if you had to address it yourself.
               1. We had one client who had to replace a refrigerator bought online in less than a month.  They thereafter had a new version delivered and two years later the unit is running perfectly.  Had the owner gone with a new one in the first place they would have saved the cost of the used unit as well as the time invested in finding it and then ultimately removing it.

The single most important recommendation UPM can make to owners/investors of income property is to do your homework.  Learn all that you can about the location of a target property.  Learn all you can about the property itself.  Understand your limits with regard to prepping the rental and maintaining it.  Plan forward for expected expenses. 

Find more information and related PDF files on our website at  http://upm-idaho.com/Investors.html