The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing

by Brandon Turner

Overview

Fast-track your way to financial freedom with this bestselling guide to finding and funding profitable real estate business deals.

Are you ready to discover a safe and fast path to financial freedom? Brandon Turner, bestselling author and longtime host of The BiggerPockets Podcast, will show you how to achieve your goals by finding incredible real estate investment opportunities. With a wealth of in-depth advice, The Book on Rental Property Investing shares the secret strategies that will help you build high-margin cash flow across your real estate portfolio.

Whether you’re a beginner or looking for an advanced guide, this valuable book will help you learn how to create an profitable and practical plan, find incredible deals, analyze properties, build a team, finance rentals, and much more―everything you need to start making millions from your investments.

Inside, you’ll discover:

• Why many real estate investors fail, and how you can ensure you don’t!
  
• Creative ways to find incredible deals in any market
  
• How to achieve property management success without touching a toilet, paintbrush, or broom
  
• Unique strategies for financing rentals, even with limited cash flow
  
• How to maximize your wealth during tax season
  
• And so much more!
  

Product Details

ISBN-13:	9780990711797
Publisher:	BiggerPockets Publishing
Publication date:	10/28/2015
Series:	BiggerPockets Rental Kit , #2
Pages:	360
Sales rank:	19,153
Product dimensions:	5.90(w) x 8.90(h) x 0.80(d)

About the Author

Brandon Turner is an author, entrepreneur, and active real estate investor with more than 500 rental units and dozens of property rehabs under his belt. He is Vice President of BiggerPockets, co-host of The BiggerPockets Podcast, and author of six best-selling business books—including The Book on Rental Property Investing and How to Invest in Real Estate—with which he enjoys showing others the power of real estate investing, passive income, and financial freedom. A life-long adventurer, Brandon (along with his wife and daughter) splits his time between his home in Hawaii and various other destinations around the globe.

Table of Contents

Prologue 1

What Do You Want? 2

About Me 3

About This Book 5

Chapter 1 Why I Love Rental Properties 7

Why Do I Love Rental Properties So Much? 8

The Four Wealth Generators 11

How Much Money Does One Need to Invest in Rental Properties? 16

What About Reserves? 19

Top Five Difficulties of Rental Property Investing 20

But I Don't Want to Fix Toilets at 2:00AM! 22

Why Do So Many Rental Property Owners Fail? 23

Quitting (or Not Quitting) Your job Through Rental Properties 27

Should You Quit? 27

Wrapping it Up 32

Chapter 2 The Five Keys to Rental Property Success 33

1 Think the Right Thoughts 33

2 Study the Right Source 37

3 Picking the Right Plan 43

4 Acquire the Right Asset 48

5 Manage the Right Metrics 48

Wrapping it Up 49

Chapter 3 Four Sample Plans 51

Plan 1: How to Make $1,000,000 Through Rental Properties 52

Plan 2: Building Wealth Through Single-Family Homes 58

House Hacking 63

How to Make $100,000 Per Year Using the BRRRR Strategy 66

Wrapping it Up 71

Chapter 4 The Ten Members of Your Real Estate Team 73

1 Spouse 74

2 Mentor/Accountability Partner 77

3 Real Estate Agent 79

4 Lender(s) 85

5 Contractors and Handymen 86

6 Bookkeeper 91

7 CPA 91

8 Lawyer 92

9 Insurance Agent 93

10 Property Manager 93

Chapter 5 Analyzing a Rental Property 97

How to Analyze a Rental Property 98

What About the Rules of Thumb? 107

123 Main Street Analysis 111

Wrapping it Up 120

Chapter 6 Investing While Living in an Expensive Area 121

Are You Looking for Homes on Sale? 122

Is the Price Relative? 123

What Is Working in Your Area? 124

Long-Distance Rental Property Investing 125

Wrapping It Up 131

Chapter 7 Types of Rental Properties 133

Single-Family Homes 134

Multifamily Real Estate 137

Condos 141

Townhomes 142

REOs/Foteclosures 142

Fixer-Uppers 143

Five Questions to Ask Before Investing in a Fixer-Upper 147

Commercial Real Estate 149

Wrapping II Up 149

Chapter 8 Location, location, location! 151

Neighborhood Classes 152

Crime 155

Drugs 156

Schools 156

Jobs Versus Unemployment 157

Population Growth 157

Housing Starts and Building Permits 158

Transportation 158

Proximity to Local Businesses 158

Price-to-Rent Ratio 159

Vacancy Races 160

Property Tax and Insurance Rates 162

Wrapping it Up 163

Chapter 9 How to Find Rental Properties 165

1 The MLS 166

2 Direct Mail Marketing for Deals 170

3 Driving for Dollars 172

4 Eviction Records 172

5 BiggerPockets Marketplace 173

6 Craigslist 173

7 Wholesalers 175

8 Passion 175

Wrapping it Up 176

Chapter 10 Which Properties Make the Best Rentals? 177

Bedrooms 178

Age 178

Garage 179

Utilities 179

Lawn 179

Parking 180

Location 180

8 Problems I Look for When Shopping for Rental Properties 180

Three Problems I Avoid When Shopping for a Rental Property 189

Wrapping It Up 190

Chapter 11 Submitting Your Offer 191

How to Make an Offer 192

The Earnest Money Deposit 195

What Should the Offer Include? 198

How Much Should You Offer? 199

16 Tips for Getting Your Offer Accepted 201

Wrapping It Up 205

Chapter 12 Real Estate Negotiation 207

The Negotiation Process 208

When to Negotiate 211

13 Tips for Successful Negotiation 211

Wrapping it Up 216

Chapter 13 Financing Your Rental Property 217

All Cash 218

Conventional Loans 222

Portfolio Lenders 227

Private Lenders 229

Other Creative Methods 235

Wrapping it Up 242

Chapter 14 How to Get a Loan Approved, Guaranteed 243

Understanding How a Loan Works 244

The 12-Digit Code You Need to Get Your Loan Approved 246

Wrapping it Up 252

Chapter 15 The Due Diligence Process 253

What Is Due Diligence? 254

Document Inspection 257

Wrapping it Up 264

Chapter 16 Getting Ready to Close 265

Order Insurance 266

Setting Up Your Bank Accounts 268

Preparing Bookkeeping 270

Do I Need an LLC? 271

The Problems with an LLC 273

Final Walk-Through of the Property 276

Plan the Rehab 276

Wrapping It Up 277

Chapter 17 Managing Your Rentals (Part I) 279

Self-Management Versus Property Management 280

Business or Hobby: Getting in the Right Mindset 284

Getting a Property Ready to Rent 287

Five Ways to Find Great Tenants 288

Accepting Phone Calls 291

Showing the Property to Tenants 291

The Application Process 292

The Move-In Condition Report 299

Wrapping It Up 303

Chapter 18 Managing Your Rentals (Part II) 305

Maintenance and Repairs 306

Dealing with Difficult Tenants 311

If You Are Unhappy, Your System Is Broken 319

Chapter 19 Exit Strategies and 1031 Exchanges 321

Hold Forever 322

Seller Financing 322

Cash Out 323

The 1031 Exchange 323

1031 Exchange Rules 326

How a 1031 Exchange Can Make You Millions 331

Wrapping it Up 334

Chapter 20 Final Thoughts 335

The Five Success Principles of Rental Ownership 335

Will You Take Action? 339

Which kind of person are you? 339

What People are Saying About This

From the Publisher

PRAISE FOR BRANDON TURNER’S BOOKS

“An insiders’ perspective, full of encouragement and resources for newcomers… Interested readers will still find the book substantially useful as a starting point. ”

—Kirkus Review on How to Invest in Real Estate

“I only wish this book had been written in 2005 when I was starting my real estate investing journey!”

—Ken Corsini, Real estate investor and star of HGTV’s Flip or Flop Atlanta

“I think this should be required reading for anyone considering real estate investing ... Countless hours, months, and—frankly—years this book would have saved me!”

—Ben Leybovich, Real estate investor, syndicator, and founder of JustAskBenWhy.com

“There are very few books that provide a detailed, step-by-step framework for accomplishing real estate success. Brandon Turner’s The Book on Rental Property Investing does that, and does it in a way that puts financial freedom through real estate within reach of anyone who wants it.”

—J Scott, Bestselling author of The Book on Flipping Houses

“I have not read a more comprehensive discussion in my 20 years of investing. This is a great reference for beginners and experienced rental owners !”

—Al Williamson, LeadingLandlord.com

"This book is an A-to-Z guide for the real estate investor —not just buying and selling, but also strategic planning, which is all too often forgotten. The real-world examples really drive it home."

—Brian Burke, CEO of Praxis Capital

“The Book on Rental Property Investing fuses passion with a system-driven, business-mindedness that provides a very big resource to help establish and achieve your personal investment goals.”

—Bill Syrios, Owner of Stewardship Properties

"I wish I had The Book on Managing Rental Properties before I made all of my expensive property management mistakes! Brandon and Heather Turner have covered the biggest challenges for landlords and solved each one with step-by-step systems. I literally gave the information in Chapter 6 on tenant pre-screening to my own team and said, 'Use this!' It's that good. ”

—Chad Carson, CoachCarson.com

“It's practical, real, and comes across very open and unbiased … This is great for beginners as well as anyone who is in another field of real estate investing looking to cross over.”

—Lisa Phillips, AffordableRealEstateInvestments.com

Editorial Reviews

There are plenty of books out there aimed at providing the motivation to want to buy rental properties, but there are very few books that provide a detailed, step-by-step framework for accomplishing real estate success. Brandon Turner’s The Book on Rental Property Investing does that, and does it in a way that puts financial freedom through real estate within reach of anyone who wants it.”

—J. Scott, Author of The Book on Flipping Houses

From the Publisher

2017-02-13
A detailed, step-by-step manual focuses on investing in rental properties and becoming a landlord. Turner (The Book on Managing Rental Properties, 2016, etc.) begins his guide to accumulating wealth through real estate investment with images of relaxing and enjoying incredible success on a beach before he promptly bursts that bubble for readers: "That is not going to happen, at least not anytime soon." But he also quickly dispels any notion that real estate investments only benefit those who already have plenty of money. Instead, the author encourages readers from the first chapters to think through long-term financial plans in terms of percentages rather than the often staggering costs of homes in expensive areas. Turner explains this idea of "relative pricing" to help anyone apply his methods to all financial situations while also being realistic: "Often certain investments are working in your town, but they are just not working at your financial level." Along with his own detailed explanations, he includes numerous graphs, tables, and interviews with other successful investors showing different points of view. Turner addresses specific questions, like "five questions to ask before investing in a fixer-upper" and even how to deal with difficult tenants—the solution involves a metaphor featuring his 18-month-old Yorkie. Although he clearly lays out the steps to investing at any level, Turner never shies away from doses of reality. He plainly states: "Rental property investment has a tendency to take over your life." With this straightforward, but also highly personal tone, he easily invites readers into his own experiences, making even the most technical explanation feel like it comes from a trusted friend. He also finds clever ways to frame more difficult pieces of advice, keeping a very human element prominent through all the business talking points. "Money is by far not the most important thing in life," he writes, while also delicately encouraging readers to be vigilant of how their social connections might impact their images as businesspeople. This is the kind of friendly but specific advice he weaves into every chapter. A thorough and accessible introduction to the complex world of real estate investments.

Kirkus Reviews