Review of Investopedia’s: “Rental Properties: Cash Cow Or Money Pit?” (Investopedia 2012). Rental Properties: Cash Cow Or Money Pit. Retrieved from:  http://www.forbes.com/sites/investopedia/2012/03/30/rental-properties-cash-cow-or-money-pit/

An obvious way to make a profit is investing in rental properties. Its not as easy as it seems though. There are many risks involved including choosing the right tenants and area. But there is a safe and methodical way to plan a proper execution. The article above features formulas that will aid in the purchasing and leasing of investment properties. With those formulas in place, you can make an educated guess as to whether or not to make the investment.

Once you decide to purchase and rent an investment property, one must choose between Full-service leases, Net leases, or  Triple-net (NNN) leases. “In full-service leases, tenants do not pay anything in addition to rent. In net leases, tenants usually pay their portion of the increase in expenses for the period after they move into the property. In triple-net leases, the tenant pays a pro-rata share of all property expenses” (Investopedia). After choosing what type of lease you prefer, you must decide how much you want to lease your property per month. Remember not the entire leasing amount will be a net profit. You have to consider other expenses like maintenance and property taxes if you are choosing a lease that entitles you to acquire those expenses. This is where the formula comes to place.

I’m a huge believer in the old saying, “big prices equal big profits.” If you are going to lease your property, why not try to go after the maximum profit? Besides, when you lease your property at a higher rate, you tend to get a certain clientele that tends to pay their rent in full and on time. Try to rent to people who have been referenced to you by friends and family. Note: I didn’t say to rent to friends and family. That will probably be a huge mistake you will regret in the future. I’ve learned throughout the years that friends, family and business do not mix well. Like Mr. Trump says, “its not personal, its business.” Well with your friends and family, business will be personal 100% of the time.

One topic this article forgets to mention is the legality of a lease. Any lease of a land for more than one year must be in writing (contract or agreement form.) Make sure to type up a great lease agreement that has your best interests covered. If you are unaware of what you should include in the agreement, hire a lawyer to type up a template that you may reuse.

A great thing about Agent BizzUp websites is that they are versatile. Whether you are in property sales, property management, or both, our templates will suit your every need. Our websites will help you market your properties and property management services to future investment property owners. If you already have an Agent BizzUp website and you are ready to take your marketing to the next level, why don’t you try our SEM (Search Engine Marketing) Services. Agent BizzUp’s Search Engine Marketing Services have plans starting as low as $50/month.

To read the entire featured article please visit: http://www.forbes.com/sites/investopedia/2012/03/30/rental-properties-cash-cow-or-money-pit/