Real estate investing isn't as hard as everyone thinks. You don't need some long book and a CD with all kinds of confusing information in it. You just need to know how the bank works to be able to get a loan. Then you rent out the home for the same amount of income and it costs in the first place. Then you have $1000 income from rent and $1000 worth of mortgage payment and taxes. The amount that you can afford with the bank is called your borrowing power and you should quickly find out what yours is.

Use my free mortgage calculator to figure out how much of a monthly payment you can afford and then go from there. The bank will figure out your debt to income ratio which is basically your bills divided into your income to get a percentage. That debt to income ratio can not be higher than about 40% in this economy. Lenders were loaning out mortgages for up to 50% before the real estate crash. They were also giving out home equity loans for 110% of the value of your home so there was nothing to back up that money.

Hire a Property Management Group

You can have a property management group rent the home for you. They will find a tenant for you at a market value and take 10% of the rent each month. It's well worth avoiding the head aches because they also receive any phone calls and problems from the tenant that arise. You are never bothered unless you need to replace something that costs money. They will let you know the cost of the problem and all you need to do is send the check. They also make the appointment with the contractor to fix the problem. You can spend your time going to the bank to get approved for your next investment.

Once you have the rent go back the mortgage calculator to see what you can afford with your new income. The bank will accept 70% of your rental income per month as income on top of our salary.

Investment Mortgage - $450
Investment Taxes - $150

Rental Income - $750 (70% = $525)

That means you can afford $75 less than you could before you bought this investment property.

The mortgage calculator will show you everything you need to know about your monthly mortgage payment. Also make sure you have the current interest rates because it makes a big difference when you're crunching numbers on your next mortgage.

I have a few pages about real estate investing because that's all it takes to start making money with real estate! Just buy a home and rent it out, it's that easy. Plus in this economy it's a great times to buy because  your homes will start to appreciate very soon and very quickly. This is the real estate market where you can double a lot of money that you don't even have. All you have is the down payment to a $100,000 home and you double the $100,000 to $200,000. That's amazing profit right there that you cant do in the stock market.