photo credit: Jug Jones
If you’re new to the investment property game then there are a few options to consider before you dive in and buy your first rental property.
What can you afford? It’s the obvious question but there are some not-so-obvious things to consider. Obviously you’ll first consider the mortgage, but the think about repairs, routine maintenance, expense of staff, advertising, insurance, and any upgrades you want to make.
How involved will you be? Are you going to live on the property also? Will you be living elsewhere? How far away will you live? Will you need to hire a property manager? All of these questions need to be answered and considered thoroughly.
What is the future plan? Whether your property is going to be a long term investment or a flip is something that needs to be ironed out before you make the purchase. The length of your commitment will determine how much you should pump into the property initially or if you need to make a long term plan for your investment property which will cover its needs in a practical and rational way.
Your tenants. Getting the right tenants is the most important aspect of being a property manager. So before you buy you need to consider the type of tenants you want and then look at the typical tenants the prospective rental property attracts. Are you going to draw the right sort of people for your goals?
Making a large purchase is a big consideration and all aspects should be carefully explored before you take that jump.