There are a lot of things to keep in mind if you are considering buying investment properties. Understanding that owning rental property is a very involved investment is very important. Even if you are planning on having a property management company help you it will still require a lot of your time, energy and money.
1. Tax benefits and rate of return: Check with your CPA about how this property will or won't benefit you tax wise. Is this the best investment you could make?
2. Mortgage: Meet with an experience mortgage broker about lenders requirements for investment loans.
3. Cash flow: Make sure you really will have a positive cash flow after all expenses. If you do not have positive cash flow, its not an investment property. Crunch the numbers and be realistic!
4. Management: Buy close to your home if you will self-manage. Factor in management costs if you hire a property manager.
5. Cash reserves: Have several months of cash reserves on hand for vacancy and repairs.
Things to look for in a property:
3 bedrooms 2 bath minimum is best, but not always necessary.
Good school district.
Good commute location.
Good condition-foundation, roof, paint, upgrades, appliances etc., unless you want and can do the work quickly and not have a long vacancy.
If you are considering buying an investment property contact Luke Stallings. It is important to have a realtor who is familiar with rental properties. Luke Stallings has been managing rental properties for nine years and would be a great realtor to have on your side!