More and more first-time real estate investors are looking
to buy houses for rental income. There are a few things to consider when buying
your first investment property in Nanaimo. Buy a house near where you live so
you can keep an eye on the property. It’s not necessary to fall in love with a
property you choose because buying an income property is a lot different from
buying a house to live in. Stay focused on the bottom line and be sure to know
your numbers. Several factors that will
affect the financial performance of your rental property are, the cost of any
needed repairs, the length of time to find a qualified tenant, the realistic
market rent, and an accurate forecast of any reoccurring expenses such as
routine maintenance, management fees and property tax.
Be sure to
factor in the purchase price, closing costs and renovations. Mortgage options
differ from personal purchases because investment properties tend to be
riskier. Income, plus potential for vacancy, loss of rental income and
maintenance expenses for rental property make it harder to get financing. Do
your homework, scout rental homes, calculate rents and estimate maintenance
costs before investing. Expenses don't end with the home price and closing
costs. A rental home must meet the landlord-tenant laws that govern residential
rentals in your area and the unit must be up to building code and habitable
before you rent it out. A home in poor condition is hazardous to tenant health
and safety and a liability. Repairs, remodeling or major property
rehabilitation add thousands of dollars to your start-up costs.