by Jacques Poujade
Buying a rental property is a popular endeavor for many with experience or interest in the real estate and investment fields. While rental properties can be a lucrative endeavor, there are certain things that you should be on the lookout for when purchasing your property. I have been a leader in mortgage financing for years and knows that it can be a complicated process. However, despite that, it’s something that people do every single day and have changed many people’s lives.
As a managing partner at Lend Plus, I have dedicated my professional life to being a leader in the financial field for those looking to improve their lives. With a vast knowledge on mortgages and rental properties, I know first-hand that preparation is key. The most important thing for a budding investor is being prepared for every twist and turn that the process of buying a rental might create. Here are the 3 things you need to know about buying rentals.
Personal Finances Matter
It’s important to have your personal finances in line prior to putting forth the money to a rental property. While it’s easy to see a rental property as your path to financial comfort, it’s important to understand that it might take more than it gives in the beginning. It’s important to ensure that your personal finances are handled so that you have the resources to commit to your project. By ensuring that these personal debts are handled, you are ensuring that your financial efforts can be focused on your rental property’s needs.
Avoid Fixer Uppers
While a fixer upper can seem like the ideal situation, it can also come with a lot of not-so-fun surprises. Many gravitate to fixer-uppers seeing them as a wealth of opportunity. While these homes can come at an alluring price tag, the money being spent on renovation can exceed your budget fast. Whether it’s a bad foundation or poor wiring, fixing up a house is more than just replacing the floor and painting a few walls. If you’re just beginning, a fixer upper home might not be the best option if you’re looking to stay within your budget and are hoping to stay away from many negative surprises.
Location, Location, Location
You’ve heard it before and it’s worth repeating – location matters. However, what does that really mean? It’s not just about your house being located in a spot that your renters will love, but also the legalities of your location. It’s important to understand your location’s property taxes, crime rates, and amenities that might raise or lower your home’s value over time. If you’re looking to purchase outside of an area that you know well, communicate with the locals. In doing so, you can gain a more human insight that’s not rooted in the analytics that other data might provide.
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Purchasing a rental property is a great step for anyone looking to step into the real estate and investment fields. With the popularity of rental properties growing, it can be a lucrative endeavor when done correctly! With these tips, you’re already on your way to purchasing your first property!
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