Are you a new landlord feeling a bit overwhelmed by the world of investment property management? Soli Cayetano, Founder of Lattes and Leases and the Out-of-State Investor Academy, is here to help. In this article, Soli shares seven crucial tips that every landlord should know, empowering you to navigate your rental investment journey with confidence. For a comprehensive guide on how to become a landlord, check out this ultimate guide.
What motivated you to invest in real estate?
I got started investing in 2020 during the pandemic, and it changed my life completely. I was graduating college and about to start a commission-based job in commercial real estate. But with no one leasing office space, I decided to build some passive income by buying rental properties. Little did I know, this decision would transform my entire career. I went from owning zero rental properties to 25 in a year, quit my job, and started sharing my journey on Instagram. People were curious about how I did it because I was just a normal person with no special background in real estate. Sharing my experiences helped build a community, and I'm grateful to give back by helping others buy their first rental property. If you're curious about financing your rental property, this guide can be a great starting point.
What are the main benefits of investing in real estate?
Investing in real estate offers a tangible and controllable asset, unlike stocks, which can feel random and emotional. With real estate, you can touch it, feel it, and understand it. You have the power to make decisions that directly impact your investment, which is why I gravitated toward it.
Do you have any advice for new investors?
Starting out can be overwhelming with the need for attorneys, insurance agents, lenders, and more. Finding a good community of other investors to share resources with is invaluable. They can provide recommendations and help you avoid trial and error. For instance, using Steadily for insurance came highly recommended in my community, saving me a lot of hassle. For more financial tips for landlords, check out this article.
How to identify profitable real estate markets?
Living in a high-cost area like the Bay Area, I couldn't afford to invest locally. I had to look out of state for more affordable markets. A friend in Cincinnati, Ohio, introduced me to the local real estate scene, where properties were much cheaper. Knowing people in the market you're interested in gives you a competitive advantage. They can introduce you to reliable agents, contractors, and other key players, speeding up your learning curve. Explore different real estate strategies to identify profitable markets.
Tell us about Out-of-State Investor Academy
We launched in September 2023 and have over 400 members. Our goal is to help people from high-cost living areas invest in more affordable markets across the country. We teach how to pick a market, analyze deals, and introduce members to our network. Having a supportive community where you can ask questions and get referrals is crucial, especially for those who can't or don't want to build a public Instagram following. If you're looking to start a rental property business, this guide can be very helpful.
Why do landlords need insurance & what to look for?
Insurance is vital for protecting your assets, especially in areas prone to natural disasters like floods or wildfires. Working with insurance agents who specialize in investment properties is crucial. They understand the unique needs of landlords and can offer the best coverage for your portfolio. Insurance provides peace of mind, ensuring your investment is protected against worst-case scenarios. Be aware of unexpected landlord costs that insurance can help mitigate.
How do you screen for the right tenants?
I used to self-manage my properties, meticulously reviewing credit reports, income sources, and landlord references. Due diligence is essential to find quality tenants. However, for out-of-state properties, hiring a property manager is often a wise choice. They handle day-to-day management, ensuring your property stays in good shape and addressing any maintenance issues promptly. This is crucial for preserving your investment and providing a good living environment for your tenants. Understanding landlord responsibilities can help streamline this process.
Can you share the 2024 plans for Out-of-State Investor Academy?
We're expanding into new asset classes, including a boutique hotel in Palm Springs. This venture pushes me creatively and allows me to explore hospitality while continuing to invest in long-term and midterm rental properties in the Midwest. Exciting times ahead as we diversify and grow!
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