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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: 4,446 sq ft
    Lot size: 5,662 sqft
    Year built: 1983
    Days on market: 1
  2. 0 beds, 0 bath
    Home size: 3,639 sq ft
    Lot size: 4,356 sqft
    Year built: 1977
    Days on market: 1
  3. 0 beds, 0 bath
    Home size: 4,992 sq ft
    Lot size: 6,098 sqft
    Year built: 1923
    Days on market: 2
  4. 0 beds, 0 bath
    Home size: 2,055 sq ft
    Lot size: 6,969 sqft
    Year built: 1912
    Days on market: 2
  5. 0 beds, 0 bath
    Home size: 1,568 sq ft
    Lot size: 6,098 sqft
    Year built: 1910
    Days on market: 3
  6. 0 beds, 0 bath
    Home size: 4,606 sq ft
    Lot size: 6,534 sqft
    Year built: 1971
    Days on market: 3
  7. 0 beds, 0 bath
    Home size: 1,320 sq ft
    Lot size: 4,356 sqft
    Year built: 1939
    Days on market: 3
  8. 0 beds, 0 bath
    Home size: 1,272 sq ft
    Lot size: 3,920 sqft
    Year built: 1949
    Days on market: 3
  9. 0 beds, 0 bath
    Home size: 3,438 sq ft
    Lot size: 3,049 sqft
    Year built: 1969
    Days on market: 3
  10. 0 beds, 0 bath
    Home size: 3,250 sq ft
    Lot size: 4,791 sqft
    Year built: 1991
    Days on market: 4
  11. 0 beds, 0 bath
    Home size: 3,094 sq ft
    Lot size: 6,098 sqft
    Year built: 1928
    Days on market: 4
  12. 0 beds, 0 bath
    Home size: 3,424 sq ft
    Lot size: 4,791 sqft
    Year built: 1923
    Days on market: 4
  13. 0 beds, 0 bath
    Home size: 1,584 sq ft
    Lot size: 3,484 sqft
    Year built: 1952
    Days on market: 5
  14. 0 beds, 0 bath
    Home size: 1,967 sq ft
    Lot size: 3,484 sqft
    Year built: 1920
    Days on market: 6
  15. 0 beds, 0 bath
    Lot size: 2,178 sqft
    Year built: 1930
    Days on market: 7
  16. 0 beds, 0 bath
    Home size: 2,358 sq ft
    Lot size: 6,534 sqft
    Year built: 1907
    Days on market: 8
  17. 0 beds, 0 bath
    Home size: 3,222 sq ft
    Lot size: 6,098 sqft
    Year built: 1922
    Days on market: 9
  18. 0 beds, 0 bath
    Home size: 936 sq ft
    Lot size: 4,791 sqft
    Year built: 1936
    Days on market: 9
  19. 0 beds, 0 bath
    Home size: 3,887 sq ft
    Lot size: 6,534 sqft
    Year built: 1911
    Days on market: 9
  20. 0 beds, 0 bath
    Home size: 1,904 sq ft
    Lot size: 4,356 sqft
    Year built: 1909
    Days on market: 9
  21. 0 beds, 0 bath
    Home size: 1,565 sq ft
    Lot size: 4,791 sqft
    Year built: 1955
    Days on market: 10
  22. 0 beds, 0 bath
    Home size: 2,180 sq ft
    Lot size: 3,484 sqft
    Year built: 1919
    Days on market: 10
  23. 0 beds, 0 bath
    Home size: 4,983 sq ft
    Lot size: 3,920 sqft
    Year built: 1947
    Days on market: 10
  24. 0 beds, 0 bath
    Home size: 2,433 sq ft
    Lot size: 4,791 sqft
    Year built: 1927
    Days on market: 12
  25. 0 beds, 0 bath
    Home size: 2,400 sq ft
    Lot size: 5,662 sqft
    Year built: 1939
    Days on market: 14
  26. 0 beds, 0 bath
    Home size: 2,678 sq ft
    Lot size: 6,534 sqft
    Year built: 1941
    Days on market: 15
  27. 0 beds, 0 bath
    Home size: 1,865 sq ft
    Lot size: 3,920 sqft
    Year built: 1971
    Days on market: 15
  28. 0 beds, 0 bath
    Home size: 2,464 sq ft
    Lot size: 6,098 sqft
    Year built: 1921
    Days on market: 16
  29. 0 beds, 0 bath
    Home size: 2,586 sq ft
    Lot size: 2,613 sqft
    Year built: 1929
    Days on market: 16
  30. 0 beds, 0 bath
    Home size: 2,628 sq ft
    Lot size: 3,049 sqft
    Year built: 1980
    Days on market: 16
  31. 0 beds, 0 bath
    Home size: 1,482 sq ft
    Lot size: 4,356 sqft
    Year built: 1925
    Days on market: 20
  32. 0 beds, 0 bath
    Home size: 5,886 sq ft
    Lot size: 7,840 sqft
    Year built: 1955
    Days on market: 22
  33. 0 beds, 0 bath
    Home size: 2,132 sq ft
    Lot size: 1,306 sqft
    Year built: 1923
    Days on market: 22
  34. 0 beds, 0 bath
    Home size: 7,584 sq ft
    Lot size: 6,098 sqft
    Year built: 1937
    Days on market: 23
  35. 0 beds, 0 bath
    Home size: 2,522 sq ft
    Lot size: 13,939 sqft
    Year built: 1943
    Days on market: 27
  36. 0 beds, 0 bath
    Home size: 1,308 sq ft
    Lot size: 5,227 sqft
    Year built: 1939
    Days on market: 28
  37. 0 beds, 0 bath
    Home size: 2 sq ft
    Lot size: 5,662 sqft
    Year built: 1934
    Days on market: 29
  38. 0 beds, 0 bath
    Home size: 2,891 sq ft
    Lot size: 3,484 sqft
    Year built: 1979
    Days on market: 30
  39. 0 beds, 0 bath
    Home size: 1,070 sq ft
    Lot size: 3,049 sqft
    Year built: 1947
    Days on market: 30
  40. 0 beds, 0 bath
    Home size: 1,028 sq ft
    Lot size: 6,534 sqft
    Year built: 1941
    Days on market: 31
  41. 0 beds, 0 bath
    Home size: 2,449 sq ft
    Lot size: 6,534 sqft
    Year built: 1924
    Days on market: 32
  42. 0 beds, 0 bath
    Home size: 2,472 sq ft
    Lot size: 2,178 sqft
    Year built: 1924
    Days on market: 33
  43. 0 beds, 0 bath
    Home size: 1,641 sq ft
    Lot size: 3,484 sqft
    Year built: 1922
    Days on market: 34
  44. 0 beds, 0 bath
    Home size: 6,050 sq ft
    Lot size: 6,534 sqft
    Year built: 1968
    Days on market: 35
  45. 0 beds, 0 bath
    Home size: 2,889 sq ft
    Lot size: 5,662 sqft
    Year built: 1921
    Days on market: 35
  46. 0 beds, 0 bath
    Home size: 2,000 sq ft
    Lot size: 4,791 sqft
    Year built: 1930
    Days on market: 36
  47. 0 beds, 0 bath
    Home size: 1,785 sq ft
    Lot size: 6,534 sqft
    Year built: 1922
    Days on market: 38
  48. 0 beds, 0 bath
    Home size: 1,791 sq ft
    Lot size: 2,613 sqft
    Year built: 1938
    Days on market: 40
  49. 0 beds, 0 bath
    Home size: 1,444 sq ft
    Lot size: 5,227 sqft
    Year built: 1927
    Days on market: 42
  50. 0 beds, 0 bath
    Home size: 6,388 sq ft
    Lot size: 6,098 sqft
    Year built: 1986
    Days on market: 44

See all Real estate in the city of Long Beach.
(all data current as of 7/20/2017)

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

  1. 0 beds, 0 bath
    Home size: 1,454 sq ft
    Lot size: 6,760 sqft
    Year built: 1947
    Days on market: 65
  2. 0 beds, 0 bath
    Home size: 1,603 sq ft
    Lot size: 6,969 sqft
    Year built: 1943
    Days on market: 72
  3. 0 beds, 0 bath
    Home size: 2,376 sq ft
    Lot size: 6,098 sqft
    Year built: 1940
    Days on market: 120

See all Real estate in the city of Lakewood.
(all data current as of 7/20/2017)

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

  1. 0 beds, 0 bath
    Home size: 1,538 sq ft
    Lot size: 6,098 sqft
    Year built: 1956
    Days on market: 10
  2. 0 beds, 0 bath
    Home size: 3,696 sq ft
    Lot size: 9,147 sqft
    Year built: 1941
    Days on market: 43
  3. 0 beds, 0 bath
    Home size: 2,569 sq ft
    Lot size: 5,069 sqft
    Year built: 1969
    Days on market: 81
  4. 0 beds, 0 bath
    Home size: 1,494 sq ft
    Lot size: 4,356 sqft
    Year built: 1913
    Days on market: 381

See all Real estate in the city of Signal Hill.
(all data current as of 7/20/2017)

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

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