Ultimate Guide to Buy Rental Properties

Buying a rental property is a real investment method and it opens door for extra income source. When you plan to buy a rental property and if you are buying it for the first time you must have a clear vision.

Ask Yourself

Why you want to Buy a Rental Property at this point of time?

This will help you to focus on what you are doing since may be after a while your focus shifts to other income sources and thus investing on the rental property will end up bringing losses to you.

How to Finance Your First Rental Property?

   >Find a Mortgage Broker

   >Determine the down payment with broker - 

1. Generally be 20% of the purchase price of the property
2. Should get a fixed rate or variable rate of interest for your mortgage.

Finding a Potential Investing Area

Contact Local Realtor Office - which will help you to get a clear cut idea regarding the location of potential rental areas, price range etc. 

Other way is to  find out where your mortgage broker is investing

   

Investing in the same area of your mortgage broker is better and safe especially when you are investing for the first time.

Buying a 'Proper' Area

Proper Transportation facility to the plot

- Proper transportation facility to the plot you are going to buy and how a small renovation to the plot will help you receive more money from the plot in future.

So the overall concept is that there should be a growth atmosphere in the area that you are intended to buy.

Property Type -  an important factor

There are various property types like :

Detached homes

Semi detached homes

Townhouses

Condominiums

&

Multi-family buildings 

(such as duplexes, triplexes, etc.). Defining your property type that you want to buy gives you a proper direction on what you want to purchase.

Take away

When you start researching on buying a rental property, after a while you will be flooded with lots of information like different local Realtor  various potential areas and various other conditions that aid you in buying it. All these information will confuse you a lot especially when you are a first time investor. Thus you must to know to filter the areas and ultimately fix on a particular potential rental property.