Investing in real estate and becoming a millionaire can be done a little easier in Tulsa, OK with the help of the right agent. Being a landlord has been a great path to reach millionaire status for many investors. Your investment helps you get a second source of income, and helps you build equity with the help of your tenants each month. Now, investing in real estate is even more sensible thanks to depressed home prices and low interest rates.
While median home prices nationally average near $180,000, you won’t get rich from one home. However, you can produce cumulative equity and rental earnings if you own three or more homes. Therefore, we have some tips to help you get started on becoming a millionaire from investing in real estate.
Tulsa, OK is a great place to invest in real estate. The community is family friendly, it has a great economy, a low unemployment rate and much more. Families rent homes everyday in Tulsa, which makes it a great place to start investing. You will need to start out with at least three properties. If you purchase your investment properties in the same area you can manage them easier. You should hire a reliable contractor who will give you discounts for his exclusive skills to maintain all your properties. You will need someone to make minor repairs and paint between tenants. If you are not up to managing the properties yourself, you can hire a management company to do it for you. They generally charge around 8% of the total rent.
For maximum investment, think duplex or triplex. You can make more in rent with two or more connected units without the investment of two separate units.
Here are some scenarios to get you started:
Scenario 1: You buy a single family home for $65,000, you budget $1,000 a year for maintenance costs and rent it for $900 a month.
Scenario 2: You buy a triplex for $70,000, you budget $2,000 a year for maintenance costs and rent each unit for $500 = $1,500 a month.
If you choose scenario 2 over scenario 1 you only paid $5,000 more, you spent $1,000 more in maintenance and made $7,200 more on rent for the year.