Michael C. Thomsett 
Getting Started in Rental Income 

An accessible introduction to GENERATING RENTAL INCOME FROM REAL
ESTATE

GETTING STARTED IN RENTAL INCOME

Just as location is a critical component to the value of real
estate, knowledge is a critical component to investing success. As
with any type of new endeavor, gaining knowledge and experience is
essential as you move forward toward success.

If you’re interested in generating rental income through an
investment in real estate, but unsure of how to go about doing
this, Getting Started in Rental Income will show you the way.
Written in a straightforward and accessible manner, this book
discusses the two major ways of entering the rental income
market–the traditional purchase of rental properties or buying and
selling fixer-upper properties–and reveals what you need to do
once you’re in. This easy-to-read guide clearly explains how
to:

* Invest in the right properties

* Generate cash flow adequate to make insurance, tax, utility, and
monthly mortgage payments as well as to allow for periodic
vacancies

* Make a profit from flipping properties

* Take advantage of the tax benefits of real estate

* Implement specific strategies–beyond diversification–to
mitigate real estate risk

* And much more

Furthermore, Getting Started in Rental Income also identifies the
pitfalls and market risks of this field, as well as the personal
aspects of becoming involved in rental income. If you’re interested
in generating income through real estate and want to learn how,
this book has all the answers.

Inhoudsopgave

Introduction: A Market with Profit Potential.

PART 1: Approaching the Market.

Chapter 1: The Traditional Approach: Buy, Hold, Hold a
While Longer, Sell.

Studying the Rental Income Market.

Advantages to Long-Term Investing.

Disadvantages to Long-Term Investing.

Deciding When to Sell.

The Positive Long-Term Experience: A Matter of Management.

Chapter 2: Financial Aspects: Keeping the Cash
Flowing.

Leverage and Real Estate.

Mortgage Payments and Rental Income.

Rental Expense and Tax Calculations.

Tax Planning for Rental Income Property.

Chapter 3: Fixer-Upper Alternatives: The Flipping
Market.

The Flipping Concept.

Attributes of High-Potential Properties.

Quick Fix versus Expensive Problems.

Importance of Home Inspections.

Estimating Time and Cost Features.

Rental Income during Your Hold Period.

Chapter 4: The Fixer-Upper Property: Abused Homes with
Potential.

Attributes of Fixer-Uppers.

The Importance of Appearance.

Recognizing Market Potential: Valuation Theories.

The Unattractive Property: A Quick Fix.

Creating a Budget.

Checklists of Neighborhood and Property.

Classifying Expenses: Cosmetic or Expensive.

The Buyer Psychology.

Chapter 5: The Combo: Long-Term and Fixer-Upper
Portfolios.

Investment Portfolio Planning for Real Estate.

Conversion: Fixer-Upper to Long-Term Hold.

Fixing-Up Expenses in Conversions.

Combining Both Types in Your Portfolio: Limitations and
Guidelines.

Living in Your Fixer-Upper.

Personal Limitations.

PART 2: Rental Income Investment Planning
Strategies.

Chapter 6: Cash Flow First Aid: Stop the Bleeding, Do
CPR (Cash-Positive Reasoning).

How CPR Works.

Studying the Essential Cash Flow Problem.

Guidelines and Suggestions: Managing the Profitable
Situation.

Cash Flow and Fixer-Upper Time Restrictions.

Calculating Rental Property After-Tax Cash Flow.

Chapter 7: Taxing Matters: Inevitable but
Advantageous.

Real Estate Tax Rules.

Depreciation: The Basic Rules.

Figuring the Base for Depreciation.

Tax-Deferred Exchanges.

Chapter 8: Risky Business and Rewarding Business:
Comparisons.

The Nature of Risk.

Comparative Risk Analysis.

Features Defining Risk.

Tax and Inflation Risks.

Mortgage Cost Risk.

Chapter 9: Diversification and Allocation: Many
Baskets and Many Eggs.

The Purpose for Diversification.

Forms of Diversification.

Why Some Portfolios Are Not Really Diversified.

Review and Change.

Chapter 10: A Long-Term Investment View.

Cash Flow versus Profits.

Identifying the Profit Margin.

The Importance of Turnover.

Fixer-Uppers and Your Financial Plan.

Long-Term Rentals and Your Financial Plan.

Checklist: The Key Ingredients.

Glossary.

Index.

Over de auteur

Michael C. Thomsett is a financial writer who has published more than sixty books on investing, real estate, business, and management topics. He is the author of several Wiley books, including Getting Started in Six Sigma, J.K. Lasser’s Real Estate Investing, and Getting Started in Options, now in its sixth edition. Prior to his writing career, Thomsett was a professional accountant and systems consultant.