Developing a Rental Property Investment Plan

To achieve your financial goals and potential as a landlord, a rental property investment plan is needed. Not having an investment plan can be compared to a ship with a broken rudder - you'll have no control of where you'll finally end up.

As evidence of the importance of planning, consider that all the top business leaders and managers at the world's largest companies are expert planners. Also, the most successful sports teams have coaches and staff who focus the majority of their efforts at developing the most effective game plans against opposing teams.

For your purposes of investing in rental property, the individual plan that you develop will take into account your strengths, weaknesses, financial resources and time. These elements will be factored into the plan so that you can define and achieve realistic goals.

Rental Property Investment Plan

Your plan for investing in rental property should consist of a basic four-part approach…

• Phase 1 - The first portion consists of evaluating your current financial situation. You'll develop your personal income statement and balance sheet.

• Phase 2 - This phase determines your credit rating and ability to obtain mortgage financing.

• Phase 3 - The third portion estimates your total lifelong financial obligations and the number of years that you plan to retire, and

• Phase 4 - The final portion consists of estimating the yearly income you'll need in retirement, and how to develop a rental property investing plan that will generate that income. A rental property pyramid plan is developed that will build the investment property portfolio necessary to produce your retirement income.

For more in-depth information about developing an investment plan for achieving your financial and retirement goals with rental property, please visit The Landlord's Library book collection. It's the ultimate, one-stop source for practical, comprehensive information on the entire subject of residential landlording.

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