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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
    Lot size: 2,722 sqft
    Year built: 1924
    Days on market: 0
  2. 0 beds, 0 baths
    Lot size: 6,217 sqft
    Year built: 1926
    Parking spots: 4
    Days on market: 0
  3. 0 beds, 0 baths
    Lot size: 4,701 sqft
    Year built: 1953
    Days on market: 1
  4. 0 beds, 0 baths
    Lot size: 2,508 sqft
    Year built: 1921
    Days on market: 1
  5. 0 beds, 0 baths
    Lot size: 3,746 sqft
    Year built: 2006
    Parking spots: 4
    Days on market: 2
  6. 0 beds, 0 baths
    Lot size: 5,517 sqft
    Year built: 1972
    Parking spots: 2
    Days on market: 2
  7. 0 beds, 0 baths
    Lot size: 6,501 sqft
    Year built: 1946
    Parking spots: 3
    Days on market: 2
  8. 0 beds, 0 baths
    Lot size: 4,001 sqft
    Year built: 1949
    Days on market: 3
  9. 0 beds, 0 baths
    Lot size: 4,700 sqft
    Year built: 1964
    Parking spots: 4
    Days on market: 3
  10. 0 beds, 0 baths
    Lot size: 6,610 sqft
    Year built: 1941
    Parking spots: 2
    Days on market: 3
  11. 0 beds, 0 baths
    Lot size: 4,614 sqft
    Year built: 1980
    Parking spots: 4
    Days on market: 3
  12. 0 beds, 0 baths
    Lot size: 2,001 sqft
    Year built: 1923
    Days on market: 4
  13. 0 beds, 0 baths
    Lot size: 13,479 sqft
    Year built: 1959
    Days on market: 4
  14. 0 beds, 0 baths
    Lot size: 4,106 sqft
    Year built: 1904
    Days on market: 4
  15. 0 beds, 0 baths
    Lot size: 2,247 sqft
    Year built: 1918
    Days on market: 5
  16. 0 beds, 0 baths
    Lot size: 4,332 sqft
    Year built: 1946
    Parking spots: 2
    Days on market: 5
  17. 0 beds, 0 baths
    Lot size: 5,001 sqft
    Year built: 1950
    Parking spots: 3
    Days on market: 5
  18. 0 beds, 0 baths
    Lot size: 6,753 sqft
    Year built: 1905
    Parking spots: 3
    Days on market: 7
  19. 0 beds, 0 baths
    Lot size: 9,687 sqft
    Year built: 1959
    Days on market: 8
  20. 0 beds, 0 baths
    Lot size: 4,502 sqft
    Year built: 1924
    Parking spots: 2
    Days on market: 8
  21. 0 beds, 0 baths
    Lot size: 2,890 sqft
    Year built: 1919
    Days on market: 9
  22. 0 beds, 0 baths
    Lot size: 4,294 sqft
    Year built: 1958
    Days on market: 9
  23. 0 beds, 0 baths
    Lot size: 6,087 sqft
    Year built: 1939
    Days on market: 9
  24. 0 beds, 0 baths
    Lot size: 6,492 sqft
    Year built: 2002
    Parking spots: 5
    Days on market: 10
  25. 0 beds, 0 baths
    Lot size: 4,092 sqft
    Year built: 1928
    Parking spots: 3
    Days on market: 10
  26. 0 beds, 0 baths
    Lot size: 5,141 sqft
    Year built: 1961
    Parking spots: 1
    Days on market: 11
  27. 0 beds, 0 baths
    Lot size: 4,393 sqft
    Year built: 1941
    Days on market: 12
  28. 0 beds, 0 baths
    Lot size: 8,179 sqft
    Year built: 1943
    Days on market: 12
  29. 0 beds, 0 baths
    Lot size: 6,731 sqft
    Year built: 1939
    Parking spots: 4
    Days on market: 15
  30. 0 beds, 0 baths
    Lot size: 6,751 sqft
    Year built: 1968
    Parking spots: 5
    Days on market: 17
  31. 0 beds, 0 baths
    Lot size: 6,735 sqft
    Year built: 1962
    Days on market: 19
  32. 0 beds, 0 baths
    Lot size: 6,248 sqft
    Year built: 1922
    Parking spots: 4
    Days on market: 21
  33. 0 beds, 0 baths
    Lot size: 4,642 sqft
    Year built: 1925
    Days on market: 22
  34. 0 beds, 0 baths
    Lot size: 6,754 sqft
    Year built: 1923
    Days on market: 22
  35. 0 beds, 0 baths
    Lot size: 6,776 sqft
    Year built: 1922
    Parking spots: 6
    Days on market: 22
  36. 0 beds, 0 baths
    Lot size: 11,239 sqft
    Year built: 1952
    Days on market: 23
  37. 0 beds, 0 baths
    Lot size: 6,531 sqft
    Year built: 1980
    Days on market: 23
  38. 0 beds, 0 baths
    Lot size: 2,405 sqft
    Year built: 1972
    Parking spots: 3
    Days on market: 23
  39. 0 beds, 0 baths
    Lot size: 2,775 sqft
    Year built: 1955
    Parking spots: 2
    Days on market: 24
  40. 0 beds, 0 baths
    Lot size: 5,676 sqft
    Year built: 1936
    Parking spots: 3
    Days on market: 25
  41. 0 beds, 0 baths
    Lot size: 7,481 sqft
    Year built: 1940
    Parking spots: 5
    Days on market: 26
  42. 0 beds, 0 baths
    Lot size: 6,642 sqft
    Year built: 1824
    Days on market: 29
  43. 0 beds, 0 baths
    Lot size: 8,276 sqft
    Year built: 1908
    Parking spots: 2
    Days on market: 31
  44. 0 beds, 0 baths
    Lot size: 8,162 sqft
    Year built: 1962
    Parking spots: 2
    Days on market: 32
  45. 0 beds, 0 baths
    Lot size: 6,254 sqft
    Year built: 1956
    Parking spots: 4
    Days on market: 32
  46. 0 beds, 0 baths
    Lot size: 7,503 sqft
    Year built: 1923
    Days on market: 32
  47. 0 beds, 0 baths
    Lot size: 3,882 sqft
    Year built: 1959
    Days on market: 32
  48. 0 beds, 0 baths
    Lot size: 5,593 sqft
    Year built: 1922
    Parking spots: 4
    Days on market: 34
  49. 0 beds, 0 baths
    Lot size: 4,162 sqft
    Year built: 1945
    Parking spots: 3
    Days on market: 35
  50. 0 beds, 0 baths
    Lot size: 6,232 sqft
    Year built: 1928
    Parking spots: 5
    Days on market: 36

See all Real estate in the city of Long Beach.
(all data current as of 3/25/2017)

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

  1. 0 beds, 0 baths
    Lot size: 6,360 sqft
    Year built: 1940
    Parking spots: 2
    Days on market: 2
  2. 0 beds, 0 baths
    Lot size: 13,506 sqft
    Year built: 1950
    Days on market: 3
  3. 0 beds, 0 baths
    Lot size: 15,133 sqft
    Year built: 1985
    Days on market: 10
  4. 0 beds, 0 baths
    Lot size: 5,001 sqft
    Year built: 1958
    Parking spots: 1
    Days on market: 23

See all Real estate in the city of Lakewood.
(all data current as of 3/25/2017)

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

  1. 0 beds, 0 baths
    Lot size: 6,628 sqft
    Year built: 1959
    Days on market: 4
  2. 0 beds, 0 baths
    Lot size: 6,501 sqft
    Year built: 2010
    Days on market: 23
  3. 0 beds, 0 baths
    Lot size: 6,389 sqft
    Year built: 1977
    Parking spots: 4
    Days on market: 100
  4. 0 beds, 0 baths
    Lot size: 9,961 sqft
    Year built: 1921
    Parking spots: 4
    Days on market: 166
  5. 0 beds, 0 baths
    Lot size: 4,400 sqft
    Year built: 1913
    Days on market: 262

See all Real estate in the city of Signal Hill.
(all data current as of 3/25/2017)

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

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