Owning a rental property can be expensive and intimidating. Still, you can own your first Calvert rental property in a short period with a well thought out approach. Getting a rental income to supplement your income can be advantageous in reaching your life goals. Below are the key components for locating and buying your first rental property.
Get as much information as you could about the place you intend to invest in. Search for special features of the area that can bring in residents, such as a park, shopping, access to public transit, or a beautiful view. You should also read up on tax laws and mortgage rates to provide you with a solid estimate as to how much you should budget for your future investment and financing needed as down payment and mortgage costs for your first Calvert rental property.
There are various types of options you can utilize when planning to finance. Rental property loans or finance options could vary from mortgages available to owner-occupied homes. Here are some different types of financing options you could use:
- Cash – utilize cash to purchase a rental home
- Mortgage – pay a down payment and then monthly mortgage payments
Note: there are multiple types of mortgages; do your homework to make sure the loan fits your budget and needs
- Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms exclusive to property owners
- Federal Housing Administration (FHA) loans – although FHA loans are built for those planning to live on the property, there are a number of options offered that allow FHA-financed homes to have more than 1 unit (up to 4); using FHA, you can live on the property and have a rental property unit
- 203K loans – this loan factors in the cost of property repairs and improvements into the loan amount; this can be helpful when aiming to renovate a property and rent it out
Find a Property
Partner with a local real estate agent to know where there are available properties in your targeted area. Have a general idea of the home’s specifications and how much you are ready to spend. Make certain to set limits and expectations when finding a property. If you find the proper purchasing point, you can work out your long-term profitability.
In this process, a key part not to be missed is to have the property examined to determine if it is habitable as well as what should be repaired or replaced to make the property rent ready. Prior to buying, you can request a Real Property Management Gold office to assess the rental property to give advice about its rentability and to make recommendations for upgrades and so on. They can also endorse a certified home and pest inspector should the need arise. Within this important step, you can establish an estimate for the property’s current and potential performance.