Owning a rental property can seem to be like an unnerving and opulent task. Be that as it may, with a prepared approach, you can own your first Melbourne rental property in a short time. Having a rental income to increase your income can help you achieve your life goals. Below are the core elements to locating and buying your first rental property.
Research
Assemble as much data you can about the area you want to invest in. Look for key features of the area that might attract residents, such as a park, shopping, proximity to public transit or a nice view. You should also learn about the tax laws and mortgage rates to give you a sure estimate as to how much you need to account for your future investment as well as monies wanted as down payment and mortgage costs for your first Melbourne rental property.
Finance
There are many divergent types of possibilities you can employ when looking to finance, rental property loans or finance options might be different from those readily available to owner-occupied home mortgages. Here are some different types of financing options you might consider:
- Cash – use cash to buy a rental home
- Mortgage – pay a down payment and then monthly mortgage payments
Note: there are many types of mortgages, do your homework to ensure the loan fits your budget and needs - Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms specific to property owners
- Federal Housing Administration (FHA) loans – While FHA loans are designed for who are planning to live on the property, there are some options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4). Using FHA, you could live on the property and have a rental property unit.
- 203K loans – this loan factors in the cost of home repairs and improvements into the loan amount. This can be useful when looking to renovate a property and rent it out.
Find a Property
Associate with a local real estate agent to examine where there are properties available in your aspired area. Have a general idea of the specifications of the home and how much you are willing to spend. Make sure to have limits and expectations when finding a property. If you find the right purchasing point, you can determine your long-term profitability.
Property Assessment
A key step, not to be forgotten in the process is to have a property assessment of the location to determine if it is habitable and what will need to be repaired or replaced to make the home rent ready. Previous to purchasing, you can ask a Real Property Management office to assess the rental home to give suggestion about its rentability and to share ideas for upgrades etc. They can also promote a certified home and pest inspector if necessary. Within this important step, you will be able to find an estimate as to the property’s prevailing performance and future performance.
Would you like a free assessment of your potential rental property in Melbourne FL? Please contact Real Property Management Brevard today by filling out the form online or calling us directly at 321-610-8022.
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.
