Purchasing your first rental property could be an expensive project that would seem daunting. Nevertheless, you can procure your first Atascocita rental property in no time at all with a wise strategy. Regardless of whether you’re an accidental landlord or an intentional investor, the income revenue from a rental residence can absolutely change your life for the better. For a start, let’s go through the major aspects to discovering and buying your first property.
1. Research
Assemble as much information as you possibly can about the place you wish to invest in. Be alert for key features that may invite quality renters, particularly parks, shopping malls, schools, or proximity to public transit. You should also do your homework and familiarize yourself with mortgage rates and tax laws so that you can get a good estimate for how much you should budget for your future investment.
2. Financing
There are plenty of choices regarding financing; many ways to get the home that you want for a rental property. However, don’t forget to take into account that rental property loans can differ from those accessible to owner-occupied home mortgages. Here are a few of the different kinds of financing options you can try:
- Cash – One-time payment in full and the property is yours
- Mortgage – Requires a down payment and monthly payments thereafter
Note: there are numerous types of mortgages; do your research to ensure the loan suits your budget and needs - Portfolio Lenders – Access an adapted portfolio of mortgages available with flexible terms specific to homeowners
- Federal Housing Administration (FHA) Loans – While FHA loans are designed for who are planning to live on the property, there are some options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4). Using FHA, you could live on the property and have a rental property unit.
- 203K Loans – This loan factors in the cost of home repairs and improvements into the loan amount. This can be useful when looking to renovate a property and rent it out.
3. Finding a Property
Join up with a local real estate agent to determine where there are properties for sale in your desired site. Make certain you have a good estimate of the property’s parameters and the amount you are willing to spend. Don’t be scared to decide on restrictions and practical expectations when searching for real estate. When you discover the proper purchasing point, you can then ascertain the income it can give you long-term.
4. Property Assessment
One of the final steps before completing the purchase transaction is to schedule a property assessment. You will need to know if your rental property needs repairs before it can be used or if it is already available for tenants. In this essential step, you will be able to estimate the current and potential performance of your rental property.
At Real Property Management Avitus, we can study the home and give an honest assessment before purchasing it. We can inform you of its rentability and give suggestions for any upgrades that may be needed. If the situation demands, we can also give advice for a professional home and pest inspector.
Would you be interested in a free assessment of your potential rental property in Atascocita? Please contact us online or call us directly at 281-570-6357.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
