Owning a rental property can be a daunting and pricey task. But, you can purchase your first Gainesville rental property in a brief time with a planned approach. Having a rental income to boost your existing income can be beneficial in helping you accomplish your life goals. Below are the key parts to finding and acquiring your first rental property.
Collect as much information as you can regarding the place you mean to invest in. Search for standout features of the area that could attract renters, like a park, a nice view, shopping, or proximity to public transit. You also must learn about mortgage rates and tax laws so that you can get a reliable estimate for how much you should budget for your future investment and cash required as costs of down payment and mortgage for your first Gainesville rental property.
There are multiple types of options you can make use of when looking for financing. Finance options or rental property loans can vary from those available to owner-occupied home mortgages. Here are a couple of different types of financing options you could try:
- Cash – use cash to buy a rental home
- Mortgage – pay a down payment and then monthly mortgage payments
Note: there are numerous types of mortgages; do your research to ensure the loan suits your budget and needs
- Portfolio lenders – get hold of an adapted portfolio of mortgages available with flexible terms specific to homeowners
- Federal Housing Administration (FHA) loans – through FHA loans are built for those planning to stay on the property, there are certain options available with FHA that allow FHA-financed properties to have more than 1 unit (maximum of 4); you can have a rental property unit while also residing on the property using FHA
- 203K loans – this loan works into the loan amount home repair and improvement costs; this can be useful when hoping to renovate and rent a home out
Find a Property
Team up with a local real estate agent to find out where there are properties available in your targeted location. Get a good idea of the property’s specifications and how much you are willing to spend. Do set limits and expectations when looking for a property. If you get to the right purchasing point, you can work out its long-term profitability.
A primary part in the process not to be skipped is to have a property assessment of the location to clarify if it is habitable and what would require repair or replacement to make the home ready for renting to a new resident. You can ask a Real Property Management Diversified office to examine the rental home to offer advice regarding its rentability and to give suggestions for upgrades and such prior to purchasing. If necessary, they can also recommend a professional home and pest inspector. In this vital step, you should be able to get an estimate as to the property’s current and potential performance.