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5 Tips for Buying Your First Rental Property

Posted by Mary Beth Torgerson on Thursday, December 6th, 2018 at 3:09pm.

 

Real estate investing can be a lucrative opportunity if you do it right! If you’re just dipping your toes into real estate investing, there is a lot to learn before you make the move to buy your first property. Here are some of our best real estate investing tips to help you in buying your first rental property: 

1. Make sure you’re up for the job

Being a landlord isn’t for everyone. Can you be available for home maintenance issues like clogged toilets or HVAC issues? If you can’t find the time to manage the property, this might not be for you. Although some investors hire someone to handle these issues, that eats into your profits. As a first time investor, you probably don’t have the budget to source that out to someone else, so it’s important to be sure that you can handle it. 

2. Decide where you’re looking

Before you start the search for a rental property, it’s important to go ahead and have an idea of where you’re looking for rather than just looking blindly. Is there a specific area you’d like to focus on? It’s always a good choice to look for houses in neighborhoods near business centers or college campuses. 

3. Choose a budget 

One rookie mistake is to choose a move-in ready investment home that is at the top of the budget. As long as you choose a good area, even a lower cost home will rent quickly! If you’re on a budget, look for homes that need a bit of work. It’s an easy and inexpensive fix to add a coat of paint or replace carpeting in a home before you rent it out! Also, if you decide on a budget that you’re comfortable with, be sure to stick to it. 

4. Explore financing options 

Now that you have an idea what you want in a house and how much you’re willing to spend, you’ll need to look into how you’re going to pay for it. If you’re not buying the home with cash, you will need to reach out to a mortgage lender for financing information. Shop around a find the best quote you can. There also may be incentives for you if you’re flipping a property, but that will vary state by state and property by property. Our best recommendation is Christina Lane with Movement Mortgage. Contact her at clane@chattmortgage.com for more information. 

5. Contact a qualified Realtor 

This is a big investment, so it’s not a choice you want to make alone! Find an experienced Realtor who can give you advice and be your advocate in the purchasing process. Some people make the mistake of trying to do it themselves, but Realtors will have access to every home currently listed on the market, plus insider knowledge of the market and any new properties coming up. With the market how it is now, you need to be the first to know about a listing going live or you’ll miss the opportunity! You can only do that will the help of a Realtor. 


Looking to invest in Chattanooga or North Georgia? We work with a lot of investors locally. Give us a shout! 

 

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