Get as much scoop you can about the area you aspire to invest in. Look for key features of the area that might attract residents, like parks, shopping, proximity to public transit or beaches or attractions or a nice view. Also check about the tax laws and mortgage rates to give you a reliable estimate as to how much you need to allow for your future investment as well as monies expected as down payment and mortgage costs for buying your first rental in Coeur d’Alene.
There are many options you can put to use when financing. Rental property loans or finance options might be different from those attainable of owner-occupied home mortgages. Listed below are some options available to you:
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 fits your budget and needs
Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms specific to property owners
Federal Housing Administration (FHA) loans – While FHA loans are designed for those who are planning to live on the property, there are some options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4). Using FHA, you could live on the property and have a rental property unit.
203K loans – this loan factors in the cost of home repairs and improvements into the loan amount. For those homes that are fixer uppers or you just want increase your rent value.
Find a Property
Contact a local real estate agent to catch a glimpse where there are properties available in your aimed at the area. It is essential to come with a vision of specifics so they can guide you in the buying range. Have limits and expectations when finding a property, this will save you time and hassle. If you find the right purchasing point, then you can determine your long-term profitability and see the aerial view of buying your first rental.
A key step in the process of buying your first rental is to have a property assessment of the location to settle if it is habitable and what will need to be refitted or replaced to make the home rent ready. In expectation of purchasing, you can ask a Real Property Management office to assess the rental home to give tips in regard to its rentability and to make instructions for upgrades etc and give you an estimate on the rent range. They can also recommend a certified home and pest inspector if necessary. Within this major step, you will be able to find an estimate as to the property’s ongoing performance and promising performance.
Need help? Contact us at Real Property Management Coeur d’Alene, we are happy help!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.