Paul Kerley, the owner and president of Commercial Property Resources, Inc. in Salem, Oregon, owns some 1,000 residential units. The properties owned by Paul Kerley include single- and multi-family homes and apartments in Salem, Oregon, and neighboring communities.
Before investing real estate, it is important to note all of the costs associated with a rental property. Investors should be capable of covering costs such as down payments, insurance, ongoing mortgage payments, and utilities. Additionally, they should plan for significant maintenance; older properties often need renovations, and newer ones may require quick fixes. Setting money aside monthly for maintenance can help investors better prepare for unexpected issues. Depending on the type of property, there may also be monthly association fees, which are particularly common in condominium and town home developments.
Rental properties also carry some unique costs that many homeowners don't need to consider. Owners may need to pay for advertising to find tenants, and be financially prepared for vacancies as tenants come and go. Investors who use property managers to oversee their rental holdings will also need to plan for their compensation.
