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IQ Investment Strategy

Long-Term Rental

A long-term rental is an investment property you purchase and rent to tenants on leases typically lasting 12 months or longer. You become a landlord, collecting monthly rent that covers your mortgage, expenses, and ideally generates positive cash flow.

IQ's Take

"This is where generational wealth begins. Long-term rentals aren't sexy, but they're the foundation every serious investor builds on. Let me show you how to analyze these deals like a pro—and how InvestIQ can spot winners in 60 seconds flat."

The Wealth-Building Foundation

Long-term rentals are the cornerstone of real estate wealth. While they may not offer flashy returns, they deliver something more valuable: predictable, passive income month after month, year after year.

As your tenants pay down your mortgage, you build equity. As rents rise with inflation, your cash flow grows. And through it all, your property appreciates in value. This is how ordinary people become millionaires.

One rental today could be ten rentals in a decade. That's the power of compounding wealth through real estate.

Portfolio Equity Growth Over Time

IQ How It Works

The Long-Term Rental Cycle

1

ACQUIRE

Purchase property with 20-25% down payment using conventional financing or creative strategies

2

PREPARE

Make rent-ready repairs and improvements to attract quality tenants and maximize rent

3

TENANT

Screen and place qualified long-term tenant with a signed lease agreement

4

COLLECT

Receive monthly rent payments that cover expenses and generate positive cash flow

5

MANAGE

Maintain property and tenant relationships for long-term success and retention

6

GROW

Build equity through appreciation, debt paydown, and reinvested cash flow

IQ

InvestIQ Does the Math Instantly

Point your camera at any property and I'll calculate cash flow projections, cap rate, cash-on-cash return, and whether the numbers actually work—all in under 60 seconds. No more spreadsheet guessing.

IQ IQ's Playbook

Your Guide to Success

1

Analyze the Numbers First

Before falling in love with a property, run the numbers. Calculate your expected rental income, subtract all expenses (mortgage, taxes, insurance, maintenance, vacancy, property management), and ensure you have positive cash flow. Aim for at least $200-300/month net cash flow per door.

IQ
IQ's Pro Tip

Use the 1% rule as a quick filter: monthly rent should be at least 1% of purchase price. If a $200,000 property won't rent for $2,000/month, dig deeper before proceeding. InvestIQ flags this automatically.

2

Secure Investor-Friendly Financing

Conventional loans typically require 20-25% down for investment properties with slightly higher interest rates than primary residences. Shop multiple lenders and consider local credit unions. If you plan to scale, establish relationships with portfolio lenders.

IQ
IQ's Pro Tip

Your first rental could be purchased with just 3.5% down using an FHA loan if you live in one unit of a 2-4 unit property for at least one year. That's the house hack strategy—check out that page for details.

3

Buy in Landlord-Friendly Markets

Location determines your success. Research local landlord-tenant laws, eviction timelines, and rent control regulations. Strong job growth, population growth, and diverse employment sectors indicate sustainable rental demand.

IQ
IQ's Pro Tip

Drive the neighborhood at different times—weekday mornings, weekend nights. Talk to local property managers about vacancy rates and typical tenant quality. Ground truth beats online research every time.

4

Screen Tenants Rigorously

Your tenant is your customer and your business partner. Require applications with credit checks, background checks, income verification (3x monthly rent minimum), rental history, and employer verification. Be consistent with every applicant.

IQ
IQ's Pro Tip

The best predictor of future behavior is past behavior. Always call previous landlords—not just the current one who may want to get rid of a problem tenant.

5

Systematize Property Management

Decide early: self-manage or hire a property manager (typically 8-10% of rent). Either way, create systems for rent collection, maintenance requests, lease renewals, and documentation. Keep meticulous records for tax purposes.

IQ
IQ's Pro Tip

Even if self-managing, budget for property management fees in your analysis. This keeps your numbers realistic and gives you the option to step back as your portfolio grows. InvestIQ includes this in all projections.

6

Plan for the Long Game

Long-term rentals shine over time. Don't sell at the first market dip. Refinance to pull equity for your next purchase. Raise rents gradually to market rate. Treat this as a 10+ year wealth-building strategy, not a short-term play.

IQ
IQ's Pro Tip

Keep 6 months of expenses in reserves per property. The landlords who survive downturns are the ones who planned for them. That's not paranoia—that's intelligence.

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Ready to Analyze Your First Deal?

Point your camera at any property and get instant Long-Term Rental analysis. I'll crunch the numbers so you can make confident decisions.

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