monopoly

Buying An Investment Property

Shannon 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 termsAre you ready?

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 baths
    Home size: 2,638 sq ft
    Lot size: 7,116 sqft
    Year built: 1956
    Parking spots: 6
    Days on market: 1
  2. 0 beds, 0 baths
    Home size: 3,228 sq ft
    Lot size: 6,750 sqft
    Year built: 1947
    Days on market: 2
  3. 0 beds, 0 baths
    Home size: 1,584 sq ft
    Lot size: 6,436 sqft
    Year built: 1949
    Parking spots: 10
    Days on market: 2
  4. 0 beds, 0 baths
    Home size: 2,036 sq ft
    Lot size: 1,898 sqft
    Year built: 1923
    Days on market: 3
  5. 0 beds, 0 baths
    Home size: 4,874 sq ft
    Lot size: 4,055 sqft
    Year built: 1911
    Days on market: 3
  6. 0 beds, 0 baths
    Home size: 3,504 sq ft
    Lot size: 6,547 sqft
    Year built: 1959
    Parking spots: 8
    Days on market: 3
  7. 0 beds, 0 baths
    Home size: 2,507 sq ft
    Lot size: 5,001 sqft
    Year built: 1925
    Parking spots: 9
    Days on market: 3
  8. 0 beds, 0 baths
    Home size: 2,284 sq ft
    Lot size: 2,522 sqft
    Year built: 1929
    Parking spots: 4
    Days on market: 3
  9. 0 beds, 0 baths
    Home size: 4,640 sq ft
    Lot size: 4,801 sqft
    Year built: 1960
    Parking spots: 8
    Days on market: 4
  10. 0 beds, 0 baths
    Home size: 1,782 sq ft
    Lot size: 6,395 sqft
    Year built: 1925
    Parking spots: 4
    Days on market: 4
  11. 0 beds, 0 baths
    Home size: 1,903 sq ft
    Lot size: 3,060 sqft
    Year built: 1979
    Parking spots: 10
    Days on market: 5
  12. 0 beds, 0 baths
    Home size: 3,376 sq ft
    Lot size: 7,481 sqft
    Year built: 1940
    Parking spots: 10
    Days on market: 5
  13. 0 beds, 0 baths
    Home size: 6,054 sq ft
    Lot size: 11,668 sqft
    Year built: 1919
    Parking spots: 12
    Days on market: 6
  14. 0 beds, 0 baths
    Home size: 3,100 sq ft
    Lot size: 5,393 sqft
    Year built: 1955
    Days on market: 9
  15. 0 beds, 0 baths
    Home size: 10,160 sq ft
    Lot size: 7,503 sqft
    Year built: 1923
    Days on market: 10
  16. 0 beds, 0 baths
    Home size: 2,428 sq ft
    Lot size: 7,053 sqft
    Year built: 1938
    Parking spots: 8
    Days on market: 10
  17. 0 beds, 0 baths
    Home size: 2,496 sq ft
    Lot size: 9,186 sqft
    Year built: 1970
    Parking spots: 8
    Days on market: 10
  18. 0 beds, 0 baths
    Home size: 1,780 sq ft
    Lot size: 5,909 sqft
    Year built: 1946
    Parking spots: 4
    Days on market: 11
  19. 0 beds, 0 baths
    Home size: 3,798 sq ft
    Lot size: 6,527 sqft
    Year built: 1960
    Days on market: 13
  20. 0 beds, 0 baths
    Home size: 2,888 sq ft
    Lot size: 7,001 sqft
    Year built: 1923
    Parking spots: 8
    Days on market: 16
  21. 0 beds, 0 baths
    Home size: 2,292 sq ft
    Lot size: 6,250 sqft
    Year built: 1912
    Parking spots: 6
    Days on market: 17
  22. 0 beds, 0 baths
    Home size: 2,841 sq ft
    Lot size: 6,751 sqft
    Year built: 1918
    Parking spots: 8
    Days on market: 17
  23. 0 beds, 0 baths
    Home size: 3,990 sq ft
    Lot size: 6,457 sqft
    Year built: 1923
    Days on market: 18
  24. 0 beds, 0 baths
    Home size: 2,100 sq ft
    Lot size: 6,952 sqft
    Year built: 1963
    Parking spots: 4
    Days on market: 20
  25. 0 beds, 0 baths
    Lot size: 4,758 sqft
    Year built: 1977
    Parking spots: 4
    Days on market: 23
  26. 0 beds, 0 baths
    Home size: 2,100 sq ft
    Lot size: 2,764 sqft
    Year built: 1933
    Parking spots: 4
    Days on market: 23
  27. 0 beds, 0 baths
    Home size: 2,586 sq ft
    Lot size: 2,952 sqft
    Year built: 1929
    Parking spots: 4
    Days on market: 23
  28. 0 beds, 0 baths
    Home size: 4,836 sq ft
    Lot size: 5,751 sqft
    Year built: 1921
    Days on market: 24
  29. 0 beds, 0 baths
    Home size: 2,080 sq ft
    Lot size: 6,900 sqft
    Year built: 1939
    Days on market: 25
  30. 0 beds, 0 baths
    Home size: 2,315 sq ft
    Lot size: 6,734 sqft
    Year built: 1956
    Parking spots: 10
    Days on market: 26
  31. 0 beds, 0 baths
    Lot size: 7,491 sqft
    Year built: 1950
    Days on market: 27
  32. 0 beds, 0 baths
    Home size: 4,200 sq ft
    Lot size: 6,847 sqft
    Year built: 1920
    Days on market: 27
  33. 0 beds, 0 baths
    Home size: 2,284 sq ft
    Lot size: 6,220 sqft
    Year built: 1920
    Parking spots: 11
    Days on market: 27
  34. 0 beds, 0 baths
    Lot size: 7,520 sqft
    Year built: 1964
    Parking spots: 8
    Days on market: 30
  35. 0 beds, 0 baths
    Home size: 2,240 sq ft
    Lot size: 1,830 sqft
    Year built: 1923
    Days on market: 30
  36. 0 beds, 0 baths
    Home size: 5,618 sq ft
    Lot size: 7,113 sqft
    Year built: 1932
    Days on market: 33
  37. 0 beds, 0 baths
    Home size: 3,880 sq ft
    Lot size: 4,701 sqft
    Year built: 1953
    Parking spots: 4
    Days on market: 37
  38. 0 beds, 0 baths
    Lot size: 2,508 sqft
    Year built: 1921
    Days on market: 37
  39. 0 beds, 0 baths
    Home size: 2,658 sq ft
    Lot size: 3,746 sqft
    Year built: 2006
    Parking spots: 8
    Days on market: 37
  40. 0 beds, 0 baths
    Lot size: 4,700 sqft
    Year built: 1964
    Parking spots: 4
    Days on market: 38
  41. 0 beds, 0 baths
    Home size: 2,088 sq ft
    Lot size: 4,614 sqft
    Year built: 1980
    Parking spots: 8
    Days on market: 39
  42. 0 beds, 0 baths
    Lot size: 13,479 sqft
    Year built: 1959
    Days on market: 40
  43. 0 beds, 0 baths
    Home size: 3,690 sq ft
    Lot size: 4,106 sqft
    Year built: 1904
    Days on market: 40
  44. 0 beds, 0 baths
    Home size: 1,644 sq ft
    Lot size: 5,001 sqft
    Year built: 1950
    Parking spots: 3
    Days on market: 41
  45. 0 beds, 0 baths
    Home size: 2,196 sq ft
    Lot size: 6,753 sqft
    Year built: 1905
    Parking spots: 6
    Days on market: 42
  46. 0 beds, 0 baths
    Lot size: 9,687 sqft
    Year built: 1959
    Days on market: 43
  47. 0 beds, 0 baths
    Lot size: 4,502 sqft
    Year built: 1924
    Parking spots: 2
    Days on market: 44
  48. 0 beds, 0 baths
    Home size: 5,550 sq ft
    Lot size: 6,610 sqft
    Year built: 1947
    Days on market: 45
  49. 0 beds, 0 baths
    Lot size: 6,492 sqft
    Year built: 2002
    Parking spots: 5
    Days on market: 46
  50. 0 beds, 0 baths
    Home size: 2,269 sq ft
    Lot size: 4,393 sqft
    Year built: 1941
    Parking spots: 3
    Days on market: 47

See all Real estate in the city of Long Beach.
(all data current as of 4/30/2017)

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

  1. 0 beds, 0 baths
    Home size: 2,376 sq ft
    Lot size: 6,360 sqft
    Year built: 1940
    Parking spots: 4
    Days on market: 37

See all Real estate in the city of Lakewood.
(all data current as of 4/30/2017)

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

  1. 0 beds, 0 baths
    Home size: 1,441 sq ft
    Lot size: 6,321 sqft
    Year built: 1936
    Parking spots: 8
    Days on market: 1
  2. 0 beds, 0 baths
    Lot size: 6,501 sqft
    Year built: 2010
    Days on market: 27
  3. 0 beds, 0 baths
    Home size: 1,494 sq ft
    Lot size: 4,400 sqft
    Year built: 1913
    Days on market: 297

See all Real estate in the city of Signal Hill.
(all data current as of 4/30/2017)

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

Contact Form

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

 

About the Author

Shannon

Leave a Reply

Your email address will not be published. Required fields are marked *