Owning a rental property can sound like an appalling and high-priced task. Yet, with an arranged approach, you can own your first Hillcrest rental property in a short time. Having a rental income to add to your income can be good in helping you to win your life goals. Below are the principal elements to detecting and buying your first rental property.
Research
Accumulate as much info as you can about the area you propose 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 study about the tax laws and mortgage rates to give you a strong estimate as to how much you need to parcel for your future investment as well as monies asked as down payment and mortgage costs for your first Hillcrest rental property.
Finance
There are many separate types of possibilities you can make use of when looking to finance, rental property loans or finance options might be different from those open 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
Meet with a local real estate agent to consider where there are properties available in your located 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 overlooked in the process is to have a property assessment of the location to judge if it is habitable and what will need to be improved or replaced to make the home rent ready. In anticipation of purchasing, you can ask a Real Property Management office to assess the rental home to give guidance with regard to its rentability and to make recommendations for upgrades etc. They can also promote a certified home and pest inspector if necessary. Within this pivotal step, you will be able to find an estimate as to the property’s latest performance and prospective performance.
Would you like a free assessment of your potential rental property in Hillcrest from Realevate Specialists? Please contact us online or call our Mission Valley office at 858-997-2100 or our Temecula office at 951-461-0100 for more information.
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.
