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When should I buy an investment property?
My husband and I have always wanted to have a rental property, but we're scared to pull the trigger. We don't want to stretch ourselves too much financially and get stuck. But we also know that all investments carry some risk. Do you have any advice? At what point should we feel confident with our purchase?
Asked By Taylor G | New Buffalo, MI | 352 views | Investing | 1 year ago
Answer(4)
Bob Fall
Century 21 Lee-Mac Realty
Does the property cash-flow? That is the most important question. If the property brings in more than the mortgage, taxes, and insurance that is a huge plus. Then the question is what will the maintenance cost be over the next few years? A good inspector can help you note concerns. If those questions check out and you decide to purchase the property the three most important rules at that point is #1. renter selection #2. renter selection #3. renter selection!
Spell everything out on the front end so there is no question as to the expectation from you and from your tenant.
- 1 year ago
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Stephanie Biello
Biello & Black Group
It is important that you feel confident with any investment decision. Before investing in an investment property, it is essential to have a clear understanding of the current real estate market, as well as your personal financial situation. It is also wise to research potential rental markets, as this will help you make informed decisions about where and when to invest. Additionally, it may be beneficial to review your credit score and debt-to-income ratio before considering a purchase and ensure that you are financially capable of taking on a mortgage for an investment property. Finally, it would be prudent to speak with a financial advisor who can provide you with further insight into the risks and benefits of investing in an investment property.
- 1 year ago
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Megan Kilmer
Revest Homes, Inc. - Dream Catch Properties
I would wait until your primary residence has at least 50% equity. That being said you may have a very robust nest egg, or high income, where that might not be an issue. I would consult a CPA for assistance with budgeting. You can also "pre-qualify" (no credit pull) for a loan and see what they say about your lovability and how you may improve it ex: paying down debts, boosting credit score etc.
- 1 year ago
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Related Questions
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What do I need to know about buying an investment property?
Hi, My husband and I dream of owning an investment property (or several!). What do we need to know about this both from an ownership perspective and a financial aspect?
- Asked by Margaret Hudgens
- Grand Rapids, MI
- 578 views
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- 1 year ago
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When should I buy an investment property?
My husband and I have always wanted to have a rental property, but we're scared to pull the trigger. We don't want to stretch ourselves too much financially and get stuck. But we also know that all investments carry some risk. Do you have any advice? At what point should we feel confident with our purchase?
- Asked by Taylor G
- New Buffalo, MI
- 352 views
- Investing
- 1 year ago