Investing in real estate has changed dramatically over the years, so if you are looking into making that investment jump for the first time there are a few things you should think about before doing so. Investing in real estate is very involved. There is obviously a level of involvement with every investment that you may make, but real estate certainly takes it to a different level than you might expect if your investments have been entirely on paper up until this point. Though there are things you can do to prepare yourself for the investment, never underestimate it. One thing that will always help is to buy below the market price. This goes for personal homes as well as investment homes, because if you can buy below the market price it gives you more room for the value to increase when it is resold. You can't just rely on the hope that the value will increase as time goes on - more recent times have proven the possibility of the decrease of property - so spending less at the start will help you in this.
If you are renting the property out, make sure to do your homework on a tenant's legal rights. You may own the home and the property it sits on, but when you sign a lease with a tenant and lease that property to them they do have rights that you will need to abide by. These laws may differ from state to state, so make sure to be up-to-date on your state's laws before making the investment.
Finally, it may be a bit tougher than you think to receive a loan for your rental property. Where you may have only had to put 10% down in years past, expect to put 20%-30% down for a mortgage now, as well as have plenty of money to do any necessary repairs after the purchase is finished.
Comprehensive credit & criminal screening.
Get access to bankruptcies, employment history, medical records, past addresses, evictions and more.
State-specific legal forms.
Lease agreements, rental applications, lease termination, eviction forms and much more.
Our paid membership plans now include free tenant screenings! Greater access to all of our features and the membership pays for itself!
© Copyright 2016 LandlordStation LLC