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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:

  1. 0 beds, 0 bath
    Home size: 2,100 sq ft
    Lot size: 8,149 sqft
    Year built: 1926
    Days on market: 3
  2. 0 beds, 0 bath
    Home size: 1,500 sq ft
    Lot size: 6,907 sqft
    Year built: 1944
    Days on market: 3
  3. 0 beds, 0 bath
    Home size: 4,506 sq ft
    Lot size: 7,989 sqft
    Year built: 1902
    Days on market: 3
  4. 0 beds, 0 bath
    Home size: 2,326 sq ft
    Lot size: 9,887 sqft
    Year built: 1968
    Days on market: 4
  5. 0 beds, 0 bath
    Home size: 4,573 sq ft
    Lot size: 8,273 sqft
    Year built: 1910
    Days on market: 5
  6. 0 beds, 0 bath
    Home size: 3,180 sq ft
    Lot size: 7,499 sqft
    Year built: 1985
    Days on market: 5
  7. 0 beds, 0 bath
    Home size: 7,788 sq ft
    Lot size: 7,509 sqft
    Year built: 1991
    Days on market: 5
  8. 0 beds, 0 bath
    Home size: 11,046 sq ft
    Lot size: 17,608 sqft
    Year built: 1923
    Days on market: 6
  9. 0 beds, 0 bath
    Home size: 1,836 sq ft
    Lot size: 2,063 sqft
    Year built: 1908
    Days on market: 6
  10. 0 beds, 0 bath
    Home size: 2,376 sq ft
    Lot size: 6,518 sqft
    Year built: 1919
    Days on market: 8
  11. 0 beds, 0 bath
    Home size: 2,550 sq ft
    Lot size: 3,942 sqft
    Year built: 1922
    Days on market: 8
  12. 0 beds, 0 bath
    Home size: 3,912 sq ft
    Lot size: 11,911 sqft
    Year built: 1948
    Days on market: 9
  13. 0 beds, 0 bath
    Home size: 760 sq ft
    Lot size: 4,180 sqft
    Year built: 1919
    Days on market: 13
  14. 0 beds, 0 bath
    Home size: 3,226 sq ft
    Lot size: 4,092 sqft
    Year built: 1921
    Days on market: 13
  15. 0 beds, 0 bath
    Home size: 2,409 sq ft
    Lot size: 6,750 sqft
    Year built: 1937
    Days on market: 13
  16. 0 beds, 0 bath
    Home size: 6,613 sq ft
    Lot size: 6,182 sqft
    Year built: 1929
    Days on market: 14
  17. 0 beds, 0 bath
    Home size: 2,100 sq ft
    Lot size: 5,474 sqft
    Year built: 1921
    Days on market: 14
  18. 0 beds, 0 bath
    Home size: 2,570 sq ft
    Lot size: 4,877 sqft
    Year built: 1927
    Days on market: 14
  19. 0 beds, 0 bath
    Home size: 2,700 sq ft
    Lot size: 5,666 sqft
    Year built: 1922
    Days on market: 15
  20. 0 beds, 0 bath
    Home size: 1,590 sq ft
    Lot size: 2,294 sqft
    Year built: 1934
    Days on market: 18
  21. 0 beds, 0 bath
    Home size: 1,150 sq ft
    Lot size: 4,014 sqft
    Year built: 1921
    Days on market: 20
  22. 0 beds, 0 bath
    Home size: 2,358 sq ft
    Lot size: 6,753 sqft
    Year built: 1924
    Days on market: 20
  23. 0 beds, 0 bath
    Home size: 2,234 sq ft
    Lot size: 6,535 sqft
    Year built: 1910
    Days on market: 20
  24. 0 beds, 0 bath
    Home size: 1,520 sq ft
    Lot size: 5,101 sqft
    Year built: 1923
    Days on market: 20
  25. 0 beds, 0 bath
    Home size: 1,642 sq ft
    Lot size: 2,373 sqft
    Year built: 1954
    Days on market: 21
  26. 0 beds, 0 bath
    Home size: 4,770 sq ft
    Lot size: 6,969 sqft
    Year built: 1923
    Days on market: 21
  27. 0 beds, 0 bath
    Home size: 1,925 sq ft
    Lot size: 6,560 sqft
    Year built: 1912
    Days on market: 24
  28. 0 beds, 0 bath
    Home size: 1,920 sq ft
    Lot size: 4,500 sqft
    Year built: 1958
    Days on market: 26
  29. 0 beds, 0 bath
    Home size: 34,000 sq ft
    Lot size: 17,424 sqft
    Year built: 1920
    Days on market: 28
  30. 0 beds, 0 bath
    Home size: 5,540 sq ft
    Lot size: 8,501 sqft
    Year built: 1928
    Days on market: 29
  31. 0 beds, 0 bath
    Home size: 2,020 sq ft
    Lot size: 2,501 sqft
    Year built: 1921
    Days on market: 29
  32. 0 beds, 0 bath
    Home size: 6,078 sq ft
    Lot size: 7,496 sqft
    Year built: 1936
    Days on market: 30
  33. 0 beds, 0 bath
    Home size: 4,731 sq ft
    Lot size: 12,946 sqft
    Year built: 1987
    Days on market: 31
  34. 0 beds, 0 bath
    Home size: 1,300 sq ft
    Lot size: 2,613 sqft
    Year built: 1950
    Days on market: 32
  35. 0 beds, 0 bath
    Home size: 1,028 sq ft
    Lot size: 6,751 sqft
    Year built: 1941
    Days on market: 34
  36. 0 beds, 0 bath
    Home size: 2,030 sq ft
    Lot size: 3,555 sqft
    Year built: 1986
    Days on market: 36
  37. 0 beds, 0 bath
    Home size: 2,991 sq ft
    Lot size: 6,098 sqft
    Year built: 1948
    Days on market: 36
  38. 0 beds, 0 bath
    Home size: 1,880 sq ft
    Lot size: 2,178 sqft
    Year built: 1953
    Days on market: 36
  39. 0 beds, 0 bath
    Home size: 3,904 sq ft
    Lot size: 7,502 sqft
    Year built: 1923
    Days on market: 37
  40. 0 beds, 0 bath
    Home size: 14,980 sq ft
    Lot size: 22,215 sqft
    Year built: 1948
    Days on market: 40
  41. 0 beds, 0 bath
    Home size: 6,758 sq ft
    Lot size: 3,920 sqft
    Year built: 1950
    Days on market: 40
  42. 0 beds, 0 bath
    Home size: 2,880 sq ft
    Lot size: 5,662 sqft
    Year built: 1955
    Days on market: 41
  43. 0 beds, 0 bath
    Home size: 2,074 sq ft
    Lot size: 6,534 sqft
    Year built: 1961
    Days on market: 42
  44. 0 beds, 0 bath
    Home size: 1,742 sq ft
    Lot size: 4,356 sqft
    Year built: 1930
    Days on market: 42
  45. 0 beds, 0 bath
    Home size: 1,724 sq ft
    Lot size: 5,000 sqft
    Year built: 1917
    Days on market: 45
  46. 0 beds, 0 bath
    Home size: 1,180 sq ft
    Lot size: 4,791 sqft
    Year built: 1937
    Days on market: 47
  47. 0 beds, 0 bath
    Home size: 1,964 sq ft
    Lot size: 5,227 sqft
    Year built: 1921
    Days on market: 48
  48. 0 beds, 0 bath
    Home size: 2,536 sq ft
    Lot size: 6,779 sqft
    Year built: 1931
    Days on market: 48
  49. 0 beds, 0 bath
    Home size: 4,027 sq ft
    Lot size: 6,534 sqft
    Year built: 1911
    Days on market: 51
  50. 0 beds, 0 bath
    Home size: 2,790 sq ft
    Lot size: 8,268 sqft
    Year built: 1921
    Days on market: 52

See all Real estate in the city of Long Beach.
(all data current as of 10/17/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

  1. 0 beds, 0 bath
    Home size: 2,013 sq ft
    Lot size: 7,280 sqft
    Year built: 1944
    Days on market: 20
  2. 0 beds, 0 bath
    Home size: 3,070 sq ft
    Lot size: 6,534 sqft
    Year built: 1988
    Days on market: 29

See all Real estate in the city of Lakewood.
(all data current as of 10/17/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

  1. 0 beds, 0 bath
    Home size: 3,400 sq ft
    Lot size: 4,791 sqft
    Year built: 1959
    Days on market: 127
  2. 0 beds, 0 bath
    Home size: 2,569 sq ft
    Lot size: 5,069 sqft
    Year built: 1969
    Days on market: 169

See all Real estate in the city of Signal Hill.
(all data current as of 10/17/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

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