Owning a rental property can seem like a daunting and costly task. But, with a planned approach, you can get your first Smyrna rental property in a short time. Getting a rental income to supplement your income can be helpful in reaching your life goals. Below are the primary components for locating and buying your first rental property.
Gather as much information as you could concerning the place you intend to invest in. Search for key features of the area that can entice residents, such as a park, shopping, proximity to public transit, or a great view. Additionally, you ought to research about mortgage rates and tax laws so that you can get a reliable estimate concerning how much you have to budget for your future investment and the amount needed for down payment and mortgage costs for your first Smyrna rental property.
There are multiple different options you can utilize for financing. Rental property loans or finance options can differ from those mortgages offered to owner-occupied homes. Here are some different types of financing options you can use:
- 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 suits your needs and budget.
- Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms specialized for property owners.
- Federal Housing Administration (FHA) loans – even though FHA loans are designed for those planning to reside on the property, there are some available options that permit FHA-financed homes to have more than 1 unit (up to 4). You can stay on the property and have a rental property unit using FHA.
- 203K loans – this loan includes the cost of home repairs and improvements into the loan amount. This can be useful when looking to do a home renovation and then rent the home out.
Find a Property
Connect with a real estate agent local to your targeted area to see where there are properties available. Get a general idea of property specifications and how much you are ready to spend. Make sure to set limits and expectations when searching for a property. Once you get the right purchasing point, you could then determine your long-term profitability.
A vital part of the process not to be missed is to have the property examined to determine if it is livable and what has to be repaired or replaced to make the home rent ready. Prior to buying, you can ask a Real Property Management office to assess the rental property to give advice about its rentability and to make suggestions for improvements and so on. Also, they can recommend an expert home and pest inspector if needed. You should be able to figure out an estimate as to the property’s current and potential performance within this critical step.
Would you like a free assessment of your potential rental property in Smyrna? Please contact Real Property Management East Cobb today by filling out the form online or by calling us directly at 770-622-5657.