Investment Property Mortgage
Investment property, or non-owner occupied property, can be very lucrative for investors and come with a variety of benefits. There are many steps involved in securing investment properties and then utilizing those properties to make money. From seeking an investment property mortgage to deciding what to do with the property, investors must be prepared to make a lot of decisions. One of the most common ways to utilize an investment property is as a rental.
Finding Cheap Investment Properties
It is more lucrative to the investor if he or she is able to find homes that are discounted or being sold for a price below the appraised value. A qualified real estate agent can help investors seek out these homes in their area, as well as help them make an offer on these types of homes. Individuals can also locate cheap investment properties by looking through foreclosed home listings, typically available at Hudforeclosed.com. Here, individuals can search by state, county and city to find HUD foreclosed homes in their areas.
What to Look for in an Investment Property
Before attempting to obtain an investment property mortgage, individuals should find the perfect property. If you are looking for a property that will work well as a rental, a single-family home typically draws more long-term residents. Additionally, by looking up addresses on Recreation.gov, you can find recreational venues near the property you are considering purchasing. Parks, schools, museums, libraries and shopping areas nearby are a good draw for tenants. By evaluating these aspects first, you can choose an investment property that will provide a great return on investment.
The Benefits of Obtaining an Investment Property Mortgage
There are numerous benefits to purchasing investment property, including expanding your personal investment portfolio. In addition to that, you have the potential to make a profit on the property, whether you plan to rent or sell it. You can also be eligible for certain tax deductions, such as the cost of insurance for the investment property, interest on credit cards used to purchase supplies for the rental property, wages for hired helpers to improve or remodel the property and much more.
Obtaining a Property Inspection Prior to Getting an Investment Property Mortgage
An additional thing you are going to want to do before purchasing an investment property is have it inspected. This will prevent you from purchasing what is seemingly a great investment property only to find out later that there are significant and costly problems. Individuals can find a reputable and qualified home inspector by visiting the American Society of Home Inspectorsí website at Ashi.org and putting in the zip code of the home they are interested in purchasing.
Obtaining an investment property mortgage is a big decision, but can be very profitable if the correct processes are followed and the investor is diligent about finding an affordable home that will draw tenants or purchasers. With the help of a qualified real estate agent, finding the perfect investment opportunity should be relatively easy, and investors can realize profit for many years.