Owning a rental property can feel like an exorbitant task. Albeit, with an intentional approach, you can own your first West Valley City rental property in a short time. Having a rental income to boost your income can be perks in helping you to gain your life goals. Below are the important elements to recognize when buying your first rental property.
Muster as much report as you can about the area you purpose to invest in. Look for key features of the area that might attract tenants, such as a park, shopping, proximity to public transit or a nice view. You should also read about the tax laws and mortgage rates to give you a hard estimate as to how much you need to portion for your future investment as well as monies necessitated as down payment and mortgage costs for your first West Valley City rental property.
There are many several types of assortments you can exploit when looking to finance, rental property loans or finance options might be different from those eligible 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
Communicate with a local real estate agent to perceive where there are properties available in your spotted 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.
A key step, not to be disregarded in the process is to have a property assessment of the location to conclude if it is habitable and what will need to be renovated or replaced to make the home rent ready. Just before purchasing, you can ask Real Property Management Wasatch to assess the rental home to give pointers with respect to its rentability and to make promptings for upgrades etc. They can also introduce a certified home and pest inspector if necessary. Within this significant step, you will be able to find an estimate as to the property’s fresh performance and probable performance.
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.