Buying an Investment Property

 If you are looking for a great way  to make a second source of income,  you might want to  look into buying  an investment property.  If you do  this, you will be able to increase  your  equity on two pieces of real estate as opposed to just your primary place of residence.

 There are two main types of  property investors.  The first type is someone who rents out  the investment property to family or friends for short time periods.  The second type is  someone who rents out the investment property on a long term basis -  for 6 - 12 months, or more. 

If you’re the first type of buyer and are renting your investment property out to family and friends, you will have the freedom to stay in your investment property between renters.  Since you will essentially be treating your investment property as a vacation rental, you can raise or lower the weekly prices depending on the season. You will have to decide how you will rent the property - are you willing to take the time to manage this yourself, or will you place the property with a real estate agent to manage?  You also have to decide how maintenance will be handled. Are you willing to do this work yourself?  Would you prefer to pay out of pocket for each maintenance call or would a Home Warranty work better for you?

If you’re the second type of buyer and are renting your investment property out to one family as a means of steady income, you will either have to act as a landlord to your tenants, or hire a realtor to do this. And as with all rental properties, you will have the maintenance issue to contend with.  But overall, this can be a great way to make income while someone else pays your mortgage and you simultaneously gain home equity.

If you’re interested in purchasing an investment property, talk to me about pre-approval so you can start looking for one today.