There are many questions that people consider when they first contemplate purchasing an investment property. In today’s post, we’ll look at answers to some of the most frequently asked questions about property investment so that you can make the decision that is best for you. If you are interested in learning more, then contact Lido Real Estate in Orange County. We are here and ready to help you find the right property for your needs.
Why should I invest in property?
There are a number of benefits to owning an investment property, including building your long-term wealth. Carefully choosing the right home in the right neighborhood can deliver great financial results for long-term investors, and can provide a beneficial source of passive income.
How much house can I afford?
Figuring out how much house you can afford is different for everyone, which is why we can’t provide you with a set answer. However, we can help you find out which factors will impact your purchasing ability, including your income, your debt versus income ratio, and your credit history.
How much of a down payment will I need to make?
The down payment is an important item to consider when you decide to purchase an investment property, as it will affect how much profit you are able to make each month. The larger your down payment, the lower your monthly payments will be. If you are not planning on living in the house, then you will want to aim for a 20% down payment. If you’re planning on purchasing a multi-family investment property, then you will probably want to aim for a downpayment of 25%.
What credit score do I need to purchase an investment property?
While the credit score will depend on the loan company that you work with, it’s important to know that the interest rate will likely start to increase as your score falls below 740.
Should I purchase a fixer-upper?
If you are interested in purchasing an investment property, then a fixer-upper may not be something that you want to consider. While it may be tempting to think that you can purchase it for a low price, flip it, and then sell it for a higher price or keep it as a rental property, this can be a bad idea. You are more likely to pay for more than you should in renovation costs, which will defeat the purpose of the purchase.
Can I make a profit with an investment property?
Yes, you can definitely make a profit, but it’s important that you carefully calculate your operating expenses and determine what your return on investment (ROI) will be. The more expensive the home is, the higher the operating costs will be. Additionally, it’s important to consider the location of the property you are interested in. Does it have low property taxes? Is it situated in a good school district? What is the crime rate? Does it have easy access to parks, shopping, and highways?
At Lido Real Estate, we know that making good decisions with investment properties can provide wonderful benefits for you, which is why we want to help you find the right investment options for your needs. Our team of real estate agents has the experience and knowledge to help you. Whether you are looking for your first investment property or your tenth, we can provide the services you need. Contact us today to learn more about our available listings.