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Buying An Investment Property

shannonjones Featured Articles , Long Beach Real Estate , Real Estate Leave a Comment

Investment Properties 101: What You Need to Know Before Buying An Investment Property

Real estate investment property can do wonders for your financial future and help you build wealth and passive income. But what are the secrets to success?

investment property terms

First, assess your overall financial picture and how real estate will fit into your overall investment portfolio. Determine what type of initial financial investment you’ll make, what type of financing you’ll utilize and what your short- and long-term goals are.

Consider what the current market rents are for the property type you have in ind in your desired area. An experienced real estate agent or property appraiser should be able to help with this. You can also contact property management companies and peruse classified ads online. You can then determine what your net income on the property would be each month (also remember the tax benefits, if any) after factoring in regular and unforeseen maintenance expenses.

Determine also your long-term strategy for owning the property.

Finding a property with an opportunity for long-term equity growth and cash flow makes sense for more people than planning to buy and flip with an eye toward a fast profit.

Ask yourself these questions:

  • Would you be willing or able to break even, or potentially take a loss on the property each month, anticipating a high sales price in the future? If you’re putting the minimum amount of money down, creating lots of cash flow is more difficult.
  • Would you be able to cover the property’s expenses if you had vacancies?
  • Would you have funds to cover future improvements and repairs?
  • What type of tax benefit could you expect based on your overall financial picture?

Acquire financing

Lenders have different requirements for down payment and qualifying when you are purchasing an investment property than when you are purchasing a primary residence. And loans for 5+ units are completely different than those for 2-4 units. Have a firm grasp of what’s required for the type of property you’re seeking before you begin your search.

Mortgage lenders will typically charge a higher interest rate (one or more percent) on an investment property than on a primary residence. That’s because lenders consider investment properties a higher risk.

In calculating their risk, things that lenders look at when considering to lend on a rental property are the amount of down payment, previous landlord experience, borrower’s income and assets, and the property’s income.

Would you like to further explore the possiblity?

Whether you are considering purchasing your first investment property or an additional property to add to an existing portfolio, we’d be happy to help you find a property that matches your needs. Here are a few currently available investment properties:

$4,295,000
For Sale
2
Beds
6
Baths
4,880
Sq Ft
6519 E Seaside Walk
Long Beach, CA 90803
Single Family Residence - Active
$4,250,000
For Sale
4
Beds
3
Baths
3,336
Sq Ft
150 Rivo Alto Canal
Long Beach, CA 90803
Single Family Residence - Active
$3,595,000
For Sale
4
Beds
4
Baths
3,900
Sq Ft
6302 E Bay Shore Walk
Long Beach, CA 90803
Single Family Residence - Active
$3,495,000
For Sale
4
Beds
2
Baths
5,409
Sq Ft
2934 E 1st Street
Long Beach, CA 90803
Single Family Residence - Active
$3,195,000
For Sale
3
Beds
2
Baths
2,830
Sq Ft
5625 E Sorrento Drive
Long Beach, CA 90803
Single Family Residence - Active
$3,150,000
For Sale
5
Beds
4
Baths
3,900
Sq Ft
6601 E Seaside Walk
Long Beach, CA 90803
Single Family Residence - Active
$2,795,000
For Sale
4
Beds
2
Baths
2,886
Sq Ft
5614 Naples Canal
Long Beach, CA 90803
Single Family Residence - Active
$2,795,000
For Sale
4
Beds
2
Baths
3,990
Sq Ft
51 58th Place
Long Beach, CA 90803
Single Family Residence - Active
$2,698,000
For Sale
3
Beds
2
Baths
2,220
Sq Ft
5821 E Corso Di Napoli
Long Beach, CA 90803
Single Family Residence - Active
$2,598,000
For Sale
3
Beds
1,815
Sq Ft
5477 E Sorrento Drive
Long Beach, CA 90803
Single Family Residence - Active
$2,575,000
For Sale
4
Beds
3
Baths
2,602
Sq Ft
5649 E Sorrento Drive
Long Beach, CA 90803
Single Family Residence - Active
$2,490,000
For Sale
3
Beds
3
Baths
2,265
Sq Ft
102 Rivo Alto Canal
Long Beach, CA 90803
Single Family Residence - Active
$2,385,000
For Sale
3
Beds
2
Baths
2,650
Sq Ft
42 Rivo Alto Canal
Long Beach, CA 90803
Single Family Residence - Active
New Listing - 4 days online
$1,995,000
For Sale
5
Beds
4
Baths
2,933
Sq Ft
47 Angelo Walk
Long Beach, CA 90803
Single Family Residence - Active
$1,885,000
For Sale
3
Beds
3
Baths
3,663
Sq Ft
6063 Lido Lane
Long Beach, CA 90803
Single Family Residence - Active
New Listing - 3 weeks online
$1,878,800
For Sale
4
Beds
4
Baths
4,589
Sq Ft
121 Geneva
Long Beach, CA 90803
Single Family Residence - Active
New Listing - 3 weeks online
$1,849,500
For Sale
4
Beds
5
Baths
4,387
Sq Ft
3800 N Weston Place
Long Beach, CA 90807
Single Family Residence - Active
New Listing - 2 weeks online
$1,849,000
For Sale
5
Beds
4
Baths
3,845
Sq Ft
430 W San Antonio Drive
Long Beach, CA 90807
Single Family Residence - Active
$1,800,000
For Sale
4
Beds
3
Baths
3,292
Sq Ft
702 N Lariat Circle
Long Beach, CA 90815
Single Family Residence - Active
$1,799,900
For Sale
3
Beds
2
Baths
3,448
Sq Ft
219 Prospect Avenue
Long Beach, CA 90803
Single Family Residence - Active
New Listing - 20 hours online
$1,199,000
For Sale
4
Beds
5
Baths
3,167
Sq Ft
5247 E Harvey Way
Long Beach, CA 90808
Single Family Residence - Active
$910,000
For Sale
3
Beds
3
Baths
2,728
Sq Ft
4401 E Harvey Way
Long Beach, CA 90808
Single Family Residence - Active
New Listing - 2 weeks online
$850,000
For Sale
4
Beds
3
Baths
3,006
Sq Ft
4715 E Arbor Road
Long Beach, CA 90808
Single Family Residence - Active
$850,000
For Sale
4
Beds
3
Baths
2,322
Sq Ft
4621 Blackthorne Avenue
Long Beach, CA 90808
Single Family Residence - Active
$819,000
For Sale
3
Beds
2
Baths
1,883
Sq Ft
4609 Whitewood Avenue
Long Beach, CA 90808
Single Family Residence - Active Under Contract
$759,000
For Sale
3
Beds
1
Baths
1,788
Sq Ft
4432 Blackthorne Avenue
Long Beach, CA 90808
Single Family Residence - Active Under Contract
Short Sale
$700,000
For Sale
3
Beds
2
Baths
2,169
Sq Ft
4237 Charlemagne Avenue
Long Beach, CA 90808
Single Family Residence - Active
$619,900
For Sale
3
Beds
2
Baths
1,325
Sq Ft
4146 Clark Avenue
Long Beach, CA 90808
Single Family Residence - Active
$435,000
For Sale
2
Beds
1
Baths
1,391
Sq Ft
5451 E Centralia Street
Long Beach, CA 90808
Condo - Active Under Contract
$2,495,000
For Sale
4
Beds
1
Baths
4,195
Sq Ft
1790 E Burnett
Signal Hill, CA 90755
Single Family Residence - Active
$1,199,000
For Sale
5
Beds
5
Baths
3,446
Sq Ft
2557 Eastwind Way
Signal Hill, CA 90755
Single Family Residence - Active
$1,167,000
For Sale
4
Beds
5
Baths
2,834
Sq Ft
2273 Westwind Way
Signal Hill, CA 90755
Single Family Residence - Active
New Listing - 3 weeks online
$990,330
For Sale
4
Beds
3
Baths
3,103
Sq Ft
2525 Gaviota Avenue
Signal Hill, CA 90755
Single Family Residence - Active
$953,020
For Sale
4
Beds
3
Baths
2,794
Sq Ft
2512 Quiet Sands Drive
Signal Hill, CA 90755
Single Family Residence - Active
New Listing - 2 weeks online
$899,900
For Sale
3
Beds
3
Baths
2,945
Sq Ft
2108 Stanley Avenue
Signal Hill, CA 90755
Single Family Residence - Active
$775,999
For Sale
4
Beds
2
Baths
1,765
Sq Ft
3350 Gundry Avenue
Signal Hill, CA 90755
Single Family Residence - Active
$679,999
For Sale
5
Beds
2
Baths
2,120
Sq Ft
3330 Gundry Avenue
Signal Hill, CA 90755
Single Family Residence - Active
$635,000
For Sale
3
Beds
2
Baths
1,867
Sq Ft
3000 E 19th Street #105
Signal Hill, CA 90755
Condo - Active
New Listing - 3 weeks online
$615,000
For Sale
3
Beds
2
Baths
1,394
Sq Ft
3340 Orange Avenue
Signal Hill, CA 90755
Single Family Residence - Active
New Listing - yesterday
$578,000
For Sale
3
Beds
2
Baths
1,948
Sq Ft
2728 E 20th Street
Signal Hill, CA 90755
Townhouse - Active
$455,000
For Sale
2
Beds
2
Baths
1,522
Sq Ft
2662 E 20th Street #108
Signal Hill, CA 90755
Condo - Active
New Listing - 19 hours online
$449,000
For Sale
2
Beds
2
Baths
1,032
Sq Ft
2575 E 19th Street #36
Signal Hill, CA 90755
Condo - Active
New Listing - 20 hours online
$395,000
For Sale
2
Beds
2
Baths
1,033
Sq Ft
2100 E Hill Street #7
Signal Hill, CA 90755
Condo - Active
New Listing - 4 weeks online
$390,000
For Sale
2
Beds
2
Baths
878
Sq Ft
2150 Ohio Avenue #C
Signal Hill, CA 90755
Condo - Active
New Listing - 2 days online
$349,999
For Sale
2
Beds
2
Baths
1,171
Sq Ft
2001 E 21st Street #121
Signal Hill, CA 90755
Condo - Active
New Listing - 4 days online
$320,000
For Sale
2
Beds
2
Baths
1,179
Sq Ft
2501 Temple Avenue #106
Signal Hill, CA 90755
Condo - Active

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