This week and next, I am having guest bloggers on First Rental Property.
Many of these bloggers contacted me upwards to about a year ago. However, I am only now getting around to having them post their articles.
The first guest post in a series of guest posts comes from M.J.
M.J. covers the topic of mortgage modification. This is a topic that I knew nothing about prior to reading M.J.’s blog post.
For a different perspective, here is M.J.’s article on mortgage modification.
Buying a rental property – Tips To Consider
By: M.J.
Owning your own real estate property certainly has various pros and cons. With time, the value of the property increases, and you may also be able to earn lots through the property. However, there are some cons too, with regards to owning a real estate property. This can seem to be even truer, if the current situation of the real estate market is considered. Most of the homes are said to have lost their value. So, there are various things that are to be kept in mind, if you are planning to buy a rental property for the first time. Other than attaining proper knowledge on rental properties, you should also be aware of the eligibility criteria with regards to obtaining a mortgage, and the requirements for getting a mortgage modification done (if and when required).
6 Tips On Buying Rental Property
If you are going to buy a rental property for the first time, you will have to consider the following:
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Price – It is important for you to consider the current price of rental properties. Know that it does not simply depend on the real estate market situation, but also on the place where the property is situated. So, compare the rates of other properties situated within that same locality.
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Location – Continuing from the first tip, it can be said that, the place matters a lot with regards to your investment in the rental property. Consider a place that is popular with people. Moreover, it is also wise of you to try and stay close to your own home. This will enable you to closely watch over the property.
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Get to know the neighborhood before buying – There is no point buying a rental property at a place which has not so good neighbors. This can pose as a problem to your investments. There is also the question of getting accepted, and that matters too. Check if the place is a hotbed of criminal activity. Nobody would like to live in such a place.
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Get to know the rental regulations of the place – It is also important for you to be aware of the rental regulations of the place, where you are going to buy the property. For, if you fail to stick to the regulations, you may get involved in legal feuds and problems.
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Beware of the condition of the property – Before buying a rental property, it is extremely crucial for you to consider the condition, which the property is in. For example, you will have to check the condition of the wiring and internal systems of the property such as the furnace and hot water tank. The condition of these parts can have a direct impact on value of the property.
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Consider if there are any disputes on the property – Consider if there are any disputes on the property. If there are any, it is better to avoid buying that property. Otherwise, you will end up getting caught in complex problems and lawsuits.
The above 6 points you will have to keep in mind before finalizing the purchase of your rental property.
So here you have it. A guest post from M.J. on mortgage modification and 6 Point to consider when buying a rental property.
What did you think of the guest post? Would you like to see more guest posts?
Don’t forget that First Rental Property is a blog that is foccussed on helping people buy their first rental property. If you need some help and guidance with buying a rental property, for some great tips be sure to check out my blog post:
REIN Live Events and REIN Home Study Courses Review
Happy Investing!
Regards,
Neil
I would also suggest to assume costs will be higher than what you may see as the average. Leverage this into the decision of whether or not to purchase that first property. If you still know your margins are going to be generous, it’s a good sign to go ahead. After all, you never know kind of costs might crop up over time in a building…especially if its older.
Especially with older building. Things break down, maintenance is needed. There is a lot more work to do on older buildings than on new ones.
Exactly. Older buildings may have a cheaper up front price tag but can come with plenty more upkeep costs down the road.
older building. Things break down, maintenance needed. There is a lot of work to do on older buildings than on new ones.there is lot of information regrading property blogger. i like it . thank you for posting it .
Just try and equate purchasing a building with purchasing a vehicle. The older it is, the more money you’re going to have to dump into it to ensure its running as it should.