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.
Cash Flow
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.
Location
Choosing a home in a desirable location can attract tenants, adding more demand and value to your property.
Maintenance Requests
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.
Vacancy
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.
Get Insurance
Invest in landlord insurance as well as homeowners insurance in case of property damage, liability, or loss of income.
Tax Benefits
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.
Appreciation
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.
Financing
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.
Looking to start your journey to your new home? The options and benefits available may surprise you!
Get Started Today With:
Various Loan Options
Find a better home loan for your unique goals and financial situation.
Expert Guidance
Our Home Loan Experts are here to help by sharing their knowledge and setting you up for a successful process from application to close, throughout the life of your loan, and well into the future as your trusted partners.
Pre-Approval
Before you have found your dream home, get pre-approved for FREE. Once all information is submitted, we will provide your pre-approval details within the next business day.
Mortgage Checkups
Monitor and update your home loan as your mortgage needs and goals may change over time.
Save up to $1,000 on your new home purchase loan with your AmeriPurchase+ Benefits.*
Earn additional savings with credits of 0.5% on the new home purchase price when you work with our Real Estate Concierge, NewZip.** For example, if the home purchase price is $425,000, you could be saving $2,125 on your new home!
We can help guide you through every step of the home financing process. To get started, just give us a call at 877.785.5422 or get your instant rate quote here.
Just Imagine The Possibilities…
*As a member of the AmeriHome family, borrowers are part of the AmeriPurchase+ program and qualify for a $500 off lender fees and up to $500 credit toward out-of-pocket appraisal fees paid for all of your home purchases done with AmeriHome, for any property you own. Credits will be applied only if your loan closes with AmeriHome. This offer can not be combined with any other offers and is not applicable for FHA Streamline, or VA IRRRL Refinance transactions. Other restrictions may apply. Terms and conditions are subject to change. The AmeriPurchase+ program is subject to termination without notice.
**Home buyers who utilize Newzip’s agent matching service will receive the cash reward in the form of credit at closing equal to 0.5% of the home sale price. In the event that the cash reward exceeds the concessions limit the customer will receive the reward in the form of a check within 30 days of their closing date. Home sellers who utilize Newzip’s agent matching service will save 1% in the form of a pre-negotiated agent listing fee. Obtaining a mortgage from AmeriHome is not required to utilize the Newzip cash rewards program. The cash rewards program is available in all 50 states for selling and 42 for buying. The following states do not allow cash rewards for home buyers: Alaska, Iowa, Kansas, Mississippi, Missouri, Oklahoma, Oregon, or Tennessee. Realeaux Inc. (dba Newzip) is a licensed real estate brokerage based in Massachusetts, License #423451.
