Investment Property Considerations

September 7th, 2019 Posted by florida mortgage 0 thoughts on “Investment Property Considerations”

Especially in today’s market, real estate can be a great investment – whether it is for you to live in, as a flip and sell property, or even rent it out to make a profit. Regardless of the reason, there are a few things to think about before taking the plunge!

We have talked about this before, but we will remind you of it again…your down payment is important! Fifteen to twenty five percent down payment should be made if you are purchasing a home for investment purposes. Your interest rates might be higher so the more you put down, the better.

You need to think about a property management company if you do not want to be a landlord and take all the responsibility that comes with that. As a landlord, you need to be available twenty-four hours a day, seven days a week. If something goes wrong…in the middle of the night or while you are on vacation, you will be expected to find a solution in a very timely matter. If you are unable to get in touch with, your tenant will be very unhappy. Although a property management company comes with a fee, your stress level will be decreased as not only will they help you find a tenant, but they will help with fixing repairs, paperwork, etc.

We would recommend you try to figure out how much income you will make from your rental property, before taking the plunge and purchasing a home for investment purposes. We suggest you first figure out what the rental fee is in the surrounding area of the potential home. This will help you figure out if you will be able to at least cover the mortgage expense.

One last piece of advice we have for you is at the event you do not have tenants in the home for a month – or more – will you be able to pay the mortgage? Something else to take into consideration is, if tenants damage your property, will you able to afford the repair cost? Any unexpected fees that arise, will you be able to cover those too? For example, if the air conditioning unit goes out, can you afford to pay for that?

Investment properties are a big decision! We want to make sure it is the right one for you and your family. When you decide that it is the right decision, we will be here for you throughout the whole process!

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