Should I Buy an Investment Property?
Owning and investing in real estate has the ability to provide many short- and long-term financial benefits. In fact, we often hear about some of the world’s wealthiest people being involved in real estate investing. Before deciding to purchase your first investment property, make sure it is right for you by doing your research and being prepared. Read the tips below for getting started with investment properties.
Decide on the Type of Property
When looking to purchase a property as an investment, first look at the different types of properties to determine which one is right for you. There are many options when looking at investment properties and they all have pros and cons. When making your decision, be sure to take into account the location, school district, local job market, property taxes, and a mix of amenities like parks, restaurants, and movie theaters for your renters.
Are You Ready to Be a Landlord?
As the owner of the property, you are responsible for the upkeep of the property and any issues that may arise with your renters or the property. Make sure that you are ready for the upkeep on the property that you choose, or enlist the help of a third party to help you do so. There are companies dedicated to the management of investment properties, but make sure the additional costs don’t offset any potential gains.
Determine Your Return
The goal of an investment property is to give you a return on your investment. When looking at properties, make sure you evaluate the operating expenses of the property as well as the potential rent you will charge to ensure the property makes sense for your financial goals. Your mortgage payment on the property will be a large portion of your costs, so be sure to consult with your dedicated Mortgage Consultant at Cambria® Mortgage™ to look at various loan options and find the one that is best for you.
Looking to the Future
When getting started with investment properties it is best to start small, unless you have unlimited financial resources. Starting with a single property will allow you to get experience with investment properties without too much commitment. Once you feel established with your current property, you can evaluate whether you are ready to expand or what the next steps for you are.
Call Cambria Mortgage
To get started, call Cambria® Mortgage™ at 952-942-0110 today or visit CambriaMortgage.comOur team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.