Owning a rental property can feel like an intimidating and expensive task. However, with a strategic approach, you can purchase your first Duchesne rental property in a short time. Getting a rental income to augment your income can be an advantage in moving towards your life goals. Below are the key components in locating and buying your first rental property.
Research
Get as much information you can regarding the area you aim to invest in. Look for significant area features that might bring in residents, such as shopping, a park, a nice view, or proximity to public transit. Also, you must learn about the tax laws and mortgage rates so that you have a solid estimate as to how much budget you need for your future investment and monies needed as down payment and mortgage costs for your first Duchesne rental property.
Finance
There are multiple options you can use when planning to finance. Finance options or rental property loans might be different from those offered for owner-occupied home mortgages. Here are a couple of different types of financing options you can try:
- Cash – use cash to purchase a rental home
- Mortgage – pay a down payment and then monthly mortgage payments
Note: there are various types of mortgages; do your homework to make sure the loan matches your budget and needs - Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms particular to property owners
- Federal Housing Administration (FHA) loans – While FHA loans are set up for those looking to live on the property, there are a number of options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4); you could reside on the property while also having a rental property unit using FHA
- 203K loans – this loan computes the home repairs and improvements costs into the loan amount; this can be useful when planning to renovate a property and rent it out
Find a Property
Connect with a local real estate agent to view where there are properties available in your targeted location. Have a general idea of the specifications of the property and how much you are prepared to spend. Make certain to define limits and expectations when property hunting. If you get the right purchasing point, you can then figure out your long-term profitability.
Property Assessment
A crucial step is having a property assessment of the location to establish if it is habitable and what would need repair or replacement to make the home ready for renting to a new tenant. Prior to buying, you can ask a Real Property Management office to assess the rental property to give insight regarding its rentability and to make recommendations for upgrades and so on. They can also endorse a certified home and pest inspector if necessary. You can find an estimate regarding the property’s current and potential performance within this critical step.
Do you want to request a free assessment of your potential rental property? Please contact Real Property Management Uintah today by filling out the form online or by calling us directly at 435-214-4686.
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.
