Owning a rental property can come across as a disconcerting and highly priced task. Even so, with a planned approach, you can own your first Boonville rental property in a short time. Having a rental income to expand your income can be an aid in helping you to accomplish your life goals. Below are the prime elements to distinguishing and buying your first rental property.
Research
Congregate as many facts you can about the area you intend to invest in. Look for key features of the area that might attract residents, such as a park, shopping, proximity to public transit or a nice view. You should also understand about the tax laws and mortgage rates to give you a trustworthy estimate as to how much you need to parcel for your future investment as well as monies demanded as down payment and mortgage costs for your first Boonville rental property.
Finance
There are many separate types of assortments you can apply when looking to finance, rental property loans or finance options might be different from those open to owner-occupied home mortgages. Here are some different types of financing options you might consider:
- Cash – use cash to buy a rental home
- Mortgage – pay a down payment and then monthly mortgage payments
Note: there are many types of mortgages, do your homework to ensure the loan fits your budget and needs - Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms specific to property owners
- 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.
Find a Property
Ally with a local real estate agent to study where there are properties available in your located area. Have a general idea of the specifications of the home and how much you are willing to spend. Make sure to have limits and expectations when finding a property. If you find the right purchasing point, you can determine your long-term profitability.
Property Assessment
A key step, not to be omitted in the process is to have a property assessment of the location to ascertain if it is habitable and what will need to be restored or replaced to make the home rent ready. In anticipation of purchasing, you can ask a Real Property Management Results office to assess the rental home to give recommendation concerning its rentability and to make pointers for upgrades etc. They can also introduce a certified home and pest inspector if necessary. Within this vital step, you will be able to find an estimate as to the property’s latest performance and likely performance.
Do you have any questions, or would you like a free assessment of your rental property? Contact us online or call us directly at 812-461-1676 today!
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.
