Buying an investment property can be scary for first timers. However, the pros outweigh the cons as long as you have a qualified agent helping you throughout the purchase process. That’s where Team Panella comes in! Scott has over 6 years of experience with investment properties and is willing to share how the process works with you. Here’s why you should think about purchasing an investment property:
1. The Amount of Properties Available
After the show ‘Fixer Upper’ came about, everyone wanted to renovate homes and fix them up. Although the expectations may be a bit off, there is some truth to the show. If you have a good real estate team like a Chip and Jo at your back with access to the MLS, a reasonable property can be found. There’s an abundance of investment properties on the MLS! Want to know what those are? Contact Scott. If you’re considering purchasing an investment property, here are some questions you will need to ask yourself beforehand: Do I want something that is renter ready? Do I want something that needs minimal updating? Do I want a complete fixer upper? What is my timeline/When do I want the home to be ready? Do I have contractors to help with the renovation?
2. Rental Income
This is one of the top, if not THE TOP reason people buy investment properties. Rental income not only helps pay off the mortgage of your rental property, but it helps pay off your own mortgage. We currently have an investment listing for sale (1411 Sale Avenue) with a mortgage that will be about $600 per month. For that particular area, rent goes about $850 per month, so you can charge the renter $850 per month. Think about this: if you charge $850 for rent and the mortgage on the home is $600, you’re making a $250 profit every month. I think we would all love having an additional $250 per month, right?
3. Longterm Financial Stability
Over time, investing in rental properties can create stability in your financial gain. Think if you were to pay off the mortgage of the rental home? You can pocket the rent money or travel to that country you’ve always wanted to visit. A good rental property can last for decades if cared for, maintained properly, and filled with the proper tenants– this means years and years of investment income for you!