Hey TGL Family!
We hope you are all blessed and feeling happy, as we are now in the summertime and that means we get more sunshine and positivity!
This week’s blogs is going to be about some tips for when you are buying your first rental property.
Let’s get into it.
Some figure that will appear on this blog will be in dollars, according from the website we are getting our sources from.
Do you think you make the cut to be a landlord?
Being a landlord is not one of the easiest jobs in the world, you have to be a handy man at the same time, the reason being that when you own a few properties it can be quite expensive to have people doing any repairs for you, so it will save you quite some money if you know how to do some things yourself and only hire a contractor when absolutely needed.
If you think you’re not a handy person and you just don’t see yourself getting your hands dirty, you can put together a team of professionals that can help you do the job, and maybe at a cut price, who knows.
At times being a landlord can be tough, so it can be best to remain local to your tenants unless there is no need to worry with the tenants. But the more properties you have, you don’t always need to remain local.
Personal Debt? Yikes!
Ahhhh, the student loans that you took, or the unpaid medical bills, or even having your children attend university soon, if you by any chance are falling under one of these categories then purchasing a property rental, might not be the best thing now. The reason we say this is because, you are going to have to pay a mortgage, now that by itself is quite costly, depending on how long you must pay it back. So not imagine, paying your mortgage and paying any other expenses that you have, that will give you a right big headache, and we are trying to make sure that you stay headache free!
Secure a Down payment
Investment properties generally require a larger down payment than do owner-occupied properties; they have more stringent approval requirements. The 3% you may have put down on the home where you currently live isn't going to work for an investment property. You will need at least a 20% down payment, given that mortgage insurance isn't available on rental properties. You may be able to obtain the down payment through bank financing, such as a personal loan.
Finding the right location:
The last thing you want is to be left with a rental property in a deteriorating neighbourhood rather than one that is steady or improving. A city or region with a booming population and a redevelopment plan in the works might be a good place to invest.