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Taking Baby Steps to Landlord?

Crucial Facets to Know Before Buying Your First Rental Property

Real estate investing can offer a bright financial future! However, just because real estate investment has a great reputation for delivering great returns, doesn’t mean that all investments are the same.

The secret to obtaining great returns lies in understanding and choosing only the best real estate. This article will help you sort through the clutter by providing the important considerations to think about before buying your first rental property.

Landlord Checklist:

Make Sure You are Ready to Invest

Investing in buty to rent property is not for everyone. While you don’t need to belong to a high-income group to buy a rental property, it is still crucial that you have a strong hold on your personal finances before investing. Real estate investment does not make you rich overnight, it is an adventure that can take years.

It's only you who will know if real estate can fit into your investment portfolio. Get a firm grip on what real estate investing involves by taking the time to read books, websites, blog and forums. Get to know good rental property.

Have a Plan

One of the biggest reasons that investors lose money – whether in business, stocks, or real estate – is lack of proper planning. Having a plan will help you take from where you are right now to the place you want to be.

Expected Amount of Income

Before buying to rent a rental property, determine the amount of rent reasonable to expect given the quality and location of the property.

Annual Expenses

You will have reoccurring expenses such as insurance, annual property taxes, repair items, routine maintenance and the cost of any property management services.

Also, make sure to keep aside funds for bigger expenses such as replacing the air conditioner, water heater, roof, flooring, fencing or plumbing.

Risks Involved in Buying Rental Property

Rental property can offer a stable source of income, but just like any other purchase, you need to understand what you are getting into before you invest. Before you purchase a rental property, consider these risks:

  • Your property could sit idle between renters, minimizing your overall return.
  • You could bring upon yourself legal expenses should you need to evict an uncooperative tenant.
  • You could bring upon yourself huge repair costs should a bad tenant damages your property.

Hire an experienced property management firm to help you minimize risks, as they have the skills necessary to find good quality tenants.

Financing Your Property

There are many ways you can pay for your first rental property. If you have the cash, you can pay all money and not deal with banks or loans.

However, if you don’t have all the financing money, you can contact Rental Home Financing. Our mortgage lenders give you the flexibility to deposit just the down payment and take out a mortgage that best fits your financial condition to cover the remaining costs.

If you have questions, please feel free to contact us at 888-375-7977.

 

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About Rental Home Financing:

Rental Home Financing, as the best mortgage lenders we originate rental home loan products and cash out refinance investment property loans as the best investment property refinance lenders. Commercial blanket loans are available with a commercial purpose to suit your needs.

Also, as DSCR loan specialists, we are currently authorized to make such loans in most all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). When you are ready to get a mortgage for rental property, we are ready to serve you.

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