Owning a rental property can imply a fearsome and extravagant task. Nonetheless, with a deliberate approach, you can own your first Lawrenceville rental property in a short time. Having a rental income to boost your income can be a boon in helping you to realize your life goals. Below are the fundamental elements of considering and buying your first rental property.
Research
Get as much scoop you can about the area you aspire 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 check about the tax laws and mortgage rates to give you a reliable estimate as to how much you need to allow for your future investment as well as monies expected as down payment and mortgage costs for your first Lawrenceville rental property.
Finance
There are many options you can put to use when looking to finance. Rental property loans or finance options might be different from those attainable 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 one 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
Get in touch with a local real estate agent to catch a glimpse where there are properties available in your aimed at the 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 skipped in the process is to have a property assessment of the location to settle if it is habitable and what will need to be refitted or replaced to make the home rent ready. In expectation of purchasing, you can ask a Real Property Management Executives Greater Atlanta office to assess the rental home to give tips in regard to its ability to be rented and to make instructions for upgrades, etc. They can also recommend a certified home and pest inspector if necessary. Within this major step, you will be able to find an estimate as to the property’s ongoing performance and promising performance.
Would you like a free assessment of your possible rental property from Real Property Management Executives Greater Atlanta? Contact us online or call us at 678-765-8383 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.
