Learn how to get started in real estate investing right here!
An investment property can range from a small plot of undeveloped land to a multi-family building with dozens of apartments. In this blog post, we will discuss in succinct terms how to afford an investment property, particularly one that you can rent out. If you have additional questions or are looking for an investment property realtor, Clagett Enterprises in Frederick, MD, is here to help.
Save up for a Downpayment
Financing an investment property works in a similar way that you would your own home. It will take time and strategy to save up for a downpayment. Naturally, you should be aware of the mortgage for the kind of property you want to rent out and save enough to make a required downpayment, which could be 20%.
Get a Pre-approval
Once you believe you have saved up enough for your investment property of choice, it is time to get a pre-approval. You will need to get approval for a non-owner-occupied loan if you are getting a rental property. It helps to have this approval to make a compelling offer on a property.
Research Properties in Your Area
Get familiar with the local real estate market. It’s ideal if you purchase a rental property that is easy for you to visit. As a landlord, with or without a property manager, you will get to have a lot more control over how it functions and be in touch with what’s going on. That being said, as you are pursuing your property of choice, it’s a good idea to keep up with the local rental property market.
Decide What Kind of Property You Want
Among rental properties, there are lots of choices. Commercial properties allow you to rent out office or retail space, while residential properties let you rent out to one or more tenants. Self-storage buildings can also be a good choice.
Know How You Will Price It for Rent
It helps to understand how you are going to rent out your investment property before you purchase it. Understand how you can best make a profit through the rental. Clagett Enterprises can help you with your strategy.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.