2. Pay Down Debt First
If you have student loansunpaid medical bills or have children who will soon attend college, purchasing a rental property may not be the right move at this time. A 6 percent return invest your first year as a landlord is considered healthy, especially given that number should rise over time. Consider working with an experienced partner on your first property or rent out your own home to test your landlord abilities.
Beware of Higher Interest Rates The cost of borrowing money might be cheap right now, but the interest rate on an investment property will be higher than traditional mortgage find rates. Stocks may offer a 7. Get the Down Payment Investment properties generally require a larger down payment than owner-occupied properties, so they someone more stringent approval requirements. Property owners who have one or two property often do their own repairs to save money.
1. Make Sure it’s for You
How are you at repairing drywall? Or unclogging a toilet? Determine Your Return For every dollar you invest, what is your return on that dollar?.