Owning a rental property can seem like a costly and daunting task. But, with a planned approach, you could own your first San Gabriel rental property in a brief time. Getting a rental income to boost your income can be a benefit in helping you reach your life goals. Below are the main elements for finding and getting your first rental property.
Research
Get as much information as you can about the place you intend to invest in. Look for standout features of the area that could bring in renters, like shopping, access to public transit, a park, or a nice view. You also need to learn about the tax laws and mortgage rates to give you a good estimate as to how much you need to set aside for your future investment as well as cash for down payment and mortgage costs for your first San Gabriel rental property.
Finance
There are many different options you can utilize when looking to finance. Rental property loans or finance options might be different from those mortgages available to owner-inhabited properties. Here are some various types of financing options you can consider:
- Cash – Use cash to buy a rental home.
- Mortgage – Pay a down payment and then monthly mortgage payments.
- Note: There are multiple types of mortgages; perform research to guarantee that the loan suits your needs and finances
- Portfolio lenders – Get hold of an adapted portfolio of mortgages available with flexible terms offered to homeowners.
- Federal Housing Administration (FHA) loans – Though FHA loans are meant for those planning to stay on the property, there are a number of options available that let FHA-financed homes have more than 1 unit (up to 4); using FHA, you can live on the property while also having a rental property unit.
- 203K loans – This loan works in the cost of home repairs and improvements into the loan amount; this is particularly useful when you are planning to renovate a property and rent it out.
Find a Property
Link up with a local real estate agent to find out where there are properties available in your targeted location. This way, you can get a general idea of the home’s specifications and how much you would be willing to spend. Set up definite limits and expectations when finding a property. Once you find the right purchasing point, you can then determine long-term profitability.
Property Assessment
An important part of the process not to be left out is to get a property assessment of the location to determine its habitability as well as repairs or replacements needed to make the home rent ready. Before purchasing, you could ask a Real Property Management office to assess the rental property to offer insight towards its rentability and to share suggestions for upgrades and so on. Furthermore, they can recommend a certified home and pest inspector if the need arises. You should be able to establish an estimate as to the property’s current and potential performance within this vital step.
Do you want a free assessment of your potential rental property from Real Property Management Fairmate? Contact us online or call us directly at 626-691-9749 today!
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.
