3 Things To Know Before You Buy A Rental Property
1. Estimate expenses and income for each property you’re considering buying.
The expenses and income vary in every real estate investment. I can help you estimate what you can charge for rent based on data in the multiple listing service and what you’ll likely pay for property taxes and insurance costs.
You’ll also need to estimate expenses for repairs and maintenance based on the property’s condition.
2. Loan Requirements Are Different For Investment Properties.
Keep in mind that investment property loans are more costly and often have higher interest rates.
Lenders usually look for a minimum 20 percent down payment for an investment property loan. If you own a home, you may be able to pull equity from your home to fund your downpayment and closing costs.
3. Look for a location near amenities and public transportation.
Location affects your investment property’s value. A property within walking distance of restaurants, shops and other amenities will appeal to many renters. A home in an in-demand school district will draw renters with children.
For each property, consider how the location might influence your ability to rent the home.
These are just three of the many issues to consider when purchasing an investment property. Contact me today and we can discuss your approach to acquiring investment property.