Should you consider buying a property for investment?
Thinking about becoming a landlord? Or, perhaps you found a great deal and with a little hard work, it is one you can offer for sale after doing all the renovations. Becoming an investor is a big decision. Most real estate investors have vision beyond the surface of the property. They look at the tax advantages, the potential for appreciation, monthly income, and eventually cashing out near retirement.
The investment market has changed drastically since 2008. Opportunities exist now that we were difficult prior to 2008. As more and more families have lost their home due to foreclosures and short sales, the demand for rental properties have grown.
In order to purchase an investment property and get a mortgage the property must be fit certain criteria. The property must be a single family, a 1, 2, 3 or 4 unit house, or a condo. Underwriting guidelines and down payments vary by property types.
Most property investors buy a property for one of two reasons. One is to the rent the property and the other is to resale the property. Keeping properties long term is an investment strategy that lends itself to renting. Keeping a property for short term investment strategy is done primarily for resale. There is room for both types of strategies or a combination of the two in your investment portfolio.
Before purchasing your investment property there are many questions you need to answer. First, have you put your plan on paper, do you have a budget, and an actual long term strategy? Exactly how do you plan to attack the business of real estate investing?
Our team of mortgage experts work with investors everyday and can help you access your potential and advise you of what you will need to make your investment a reality.
Many investors believe if you can afford to buy one investment property, then consider whether you can afford it, buy two or more. With mortgage rates at their lowest in years, now may be time to leverage your assets and jump into the world of real estate investing.