The Book on Rental Property Investing by Brandon Turner

Very few sources would match the BiggerPockets podcast in sheer practical tips when it comes to real estate investing. It’s the single best podcast to learn (at least on our end) real estate. They have every conceivable tip to get you started and they interview all kinds of people who have made it with real estate.

And what would complement, listening or watching from this podcast? It’s the book “The Book on Rental Property Investing” written by one of the hosts, Brandon Turner!

For starters, Brandon Turner is an active real estate investor. He specializes in rental properties and has written this book specifically for noobies and maybe intermediate real estate investors who would like to try their hand in rental properties. The Book on Rental Property Investing is written well. And if you listen to the podcast, it’s very easy to imagine Brandon narrating everything to you. Or if you prefer to hear him speaking, an audible is possible to purchase on this link.

This Brandon Turner book is divided into several sections laid up specifically for those looking into entering rental property investing. So the first chapter outlines why and why not someone would like the invest in rentals. Like any other investment, you should study an investment first before diving in.

Here are some of the reasons why you should do rentals:

• No need for too much capital. We have the ability to purchase with leverage (loans).
• Hustling will get you higher returns.
• It’s relatively a stable industry.
• It worked for our ancestors and it continuously works today.
• It’s simple and straightforward. You don’t need a degree.
• Can be done passively.
• While you earn from rental income, your property value will also appreciate.
• Tax savings.
• Your rental payments can be used to pay for your loan.

Downsides:

• It might take a lot of time to set everything up (looking for a house, fixing it, screening tenants, etc.)
• You might have to deal with difficult people. If you don’t screen your tenants right, they might trash your property.
• Some states offer too much protection for tenants.

Chapters 2 and 3 Focus on how to be successful in rental property investing and examples.

Chapter 4 talks about the key people that will make your rental property a success. You take care of this team no matter what. If you can trust each person on this team, you’re set for good. It’s nice that Brandon included spouse as key to success. Without a supportive partner, you will have a hard time with any investments. The next persons are the mentors, real estate agents, lenders, contractors and handymen, bookkeeper, CPA, lawyer, insurance agent, and maybe a property manager.

Chapter 5 is about the numbers. It delves into the nitty-gritty details of owning a rental property. For starters, the money coming in should be higher than the money coming out of your pocket. Brandon Turner mentions a popular rule of thumb on the BiggerPockets podcast, the 50% and the 2% Rule. The 50% Rule states that a rental property’s expenses hover to about 50% of the income (exluding the mortgage P&I payment). The 2% rule states that the monthly rental income should be equal to or higher than 2% of the purchase price.

Chapters 6-8 Delves into the types of rental properties and locations.

Chapters 9 and 10 talks about the different ways to find potential rental properties and the best types of rental properties to have.

Chapters 11 to 14 Are negotiation techniques to the person you’re buying from, to getting a good deal on a loan.

Brandon Turner has covered every basic question you might want to ask before going for your first rental property. It includes several scenarios and tips on how to get everything started. Of course, there are more things you might discover on your own along the way. Just because this book gets the basics and some nitty-gritty going, it doesn’t mean it contains everything. Use it as a yardstick for your rentals journey. And then expand your knowledge on some other book as you go along the way. What specific book? We’ll need to reserve that for the next blog post.

Wink* wink*

For now, you can buy the book here:

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