Owning a rental property can be an overwhelming task for someone new to the landlord scene. Regardless, with a plotted approach, you can own your first Hartford rental property in a short time. Having a rental income to blow up your income can be a benefit in helping you to fulfill your life goals. Below are the primary elements to sorting out and buying your first rental property.
Research
Gather as much record you can about the area you want to invest in. Look for key features of the area that might attract residents, such as a park, shopping, proximity to public transit or a nice view. You should also get an Idea about the tax laws and mortgage rates to give you a good estimate as to how much you need to allocate for your future investment as well as monies needed as down payment and mortgage costs for your first Hartford rental property.
Finance
There are many diverse types of alternatives you can utilize when looking to finance, rental property loans or finance options might be different from those accessible to owner-occupied home mortgages. Here are some different types of financing options you might consider:
- Cash – Use cash to buy a rental home.
- Mortgage – Pay a down payment and then monthly mortgage payments.
Note: there are many types of mortgages, do your homework to ensure the loan fits your budget and needs - Portfolio lenders – Access an adapted portfolio of mortgages available with flexible terms specific to property owners.
- Federal Housing Administration (FHA) loans – While FHA loans are designed for who are planning to live on the property, there are some options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4). Using FHA, you could live on the property and have a rental property unit.
- 203K loans – This loan factors in the cost of home repairs and improvements into the loan amount. This can be useful when looking to renovate a property and rent it out.
Find a Property
Tie in with a local real estate agent to find out where there are properties available in your marked area. Have a general idea of the specifications of the home and how much you are willing to spend. Make sure to have limits and expectations when finding a property. If you find the right purchasing point, you can determine your long-term profitability.
Property Assessment
A key step, not to be missed in the process is to have a property assessment of the location to find if it is habitable and what will need to be repaired or replaced to make the home rent ready. Before purchasing, you can ask a Real Property Management office to assess the rental home and give advice on how to improve its overall rentability. They can also endorse a certified home and pest inspector if necessary. Within this critical step, you will be able to find an estimate as to the property’s present performance and potential performance.
Would you like a free assessment of your would-be rental property? Please contact Real Property Management Greater Milwaukee today by filling out the form online or calling us directly at 262-309-6961.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
