Prior to taking any steps towards investing in real estate, there are a few things about yourself you should consider. These things include: what you want, what motivational forces you respond to, and whether or not you have the temperament to handle the rental real estate investing.
Here are some questions you might want to ask yourself:
1. Does the thought of owning rental property get me motivated enough to get started in real estate investing?
2. Can I foresee the financial rewards and benefits that real estate has to offer?
3. Are there any business-work conflicts that I can settle before I make my 1st investment?
4. Do I have the ability to regulate my time so that I can manage the property successfully and still remain secure with my current work and business obligations?
5. Do I have the temperament to handle problems, complaints, and service calls in a positive, sensible manner?
6. Can I make quick decisions?
In addition to your personal inventory, you want to know if you can handle the financial aspect of investment property. With that in mind, there are some personal financial questions you should ask yourself:
7. Do I have the financial backing it takes to buy investment property?
8. If there are vacancies, would I have sufficient income to pay the expenses until I have new tenants?
9. Can I afford to make any repairs in case there isn’t enough reserve funds?
10. Do I have a good credit rating?