A lot of homeowners are considering adding an additional property to their portfolio as a rental property. If this is something you’re thinking about, here are some things for you to keep in mind:
1. Determine if it’s financially feasible. Talk to your lender. You need to make sure that you can not only afford to purchase the property, but that you also have the wherewithal to put additional money into an escrow account for repairs on the property.
2. Find out if it’s a plus one or a plus two. This indicates that you could make an additional $100 to $200 per month over and above the mortgage payment, which would give you a cushion to be able to have additional monies coming in that you can use to repair the properties. This might not seem like a lot of money, but keep in mind that your mortgage is being completely paid each month. Sure, the additional money coming in will go to annual repairs on the property, but once you’ve reached the point where the property is paid off, the investment will become pure profit to you.
If you have additional questions about buying rental properties, being a landlord, or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.