An investment property is a home that isn’t considered to be a primary residence and that you don’t live in most of the time. Buying your first rental property can be a great way to collect long-term wealth. Know if owning an investment property is the right move for you, and check out these 8 tips for renting out your property.
One way to get a return on your investment is by buying a property, renting it out, and using the cash flow to pay off your mortgage payments.
Choosing a home in a desirable location can attract tenants, adding more demand and value to your property.
Being a landlord means more than collecting checks every month. If there are issues with the home that need maintenance, you’ll likely need to cover the costs. Make sure to budget some cash in case these problems arise.
Months can go by without finding new tenants to live in your home, so be sure you budget for vacancies before purchasing a rental property if you’re relying on that income.
Invest in landlord insurance as well as homeowners insurance in case of property damage, liability, or loss of income.
Typically, you can claim tax deductions on your Schedule E tax form for owning a rental property. Please contact a tax advisor to find out what you would be able to write off.
If you plan to keep your home for a few years, the chances are that it will increase in value over time. If you choose to sell it in the future, you could sell your home for a higher price than what you paid for.
Choosing the right type of financing for your investment property is essential. Contact a Home Loan Expert today at 877.785.5422 to help guide you through your options.
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