Buying An Investment Property

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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:

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$1,065,000
Single Family Home For Sale
Active Under Contract
4
BED
3
TOTAL BATHS
2,125
SQFT
4219 Tulane Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
Price Change - 2 weeks ago
$999,995
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
3,284
SQFT
4427 Whitewood Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
Open House 08/17 at 1PM
$975,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,032
SQFT
5240 E Harvey Way
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 2 weeks online
$969,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,502
SQFT
4615 E Greenmeadow Road
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
Price Change - 4 weeks ago
$949,000
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
3,154
SQFT
4609 Faculty Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 4 weeks online
$925,000
Single Family Home For Sale
Active Under Contract
3
BED
2
TOTAL BATHS
1,913
SQFT
4740 Graywood Avenue
Long Beach, CA 90808
Lakewood Village (LVD) Subdivision
Open House 08/14 at 3:30PM
$829,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,971
SQFT
4352 Rutgers Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
$799,000
Single Family Home For Sale
Active Under Contract
4
BED
3
TOTAL BATHS
2,242
SQFT
4407 Hazelbrook Avenue
Long Beach, CA 90808
Lakewood Village (LVD) Subdivision
New Listing - 7 days online
$784,900
Single Family Home For Sale
Active
4
BED
2
TOTAL BATHS
1,975
SQFT
4557 Sunfield Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 3 weeks online
$749,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,774
SQFT
4427 Faculty Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
$725,000
Single Family Home For Sale
Active Under Contract
3
BED
2
TOTAL BATHS
1,650
SQFT
4417 E Centralia Street
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 4 weeks online
$629,900
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,177
SQFT
3609 Faust Avenue
Long Beach, CA 90808
Lakewood Village (LVD) Subdivision
New Listing - 7 days online
$589,000
Condo For Sale
Active
4
BED
2
TOTAL BATHS
1,854
SQFT
2501 Temple Avenue #306
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
$549,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,561
SQFT
2722 E 20th Street #105
Signal Hill, CA 90755
Other (OTHR) Subdivision
$534,999
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,650
SQFT
3001 E Pacific Coast
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
New Listing - 6 days online
$534,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,640
SQFT
2120 E Hill Street #201
Signal Hill, CA 90755
Harbor Lights (HL) Subdivision
$530,000
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,482
SQFT
1988 Junipero Avenue #2
Signal Hill, CA 90755
Villa de la Reina (VDR) Subdivision
New Listing - 4 weeks online
$525,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,666
SQFT
2299 Legion Drive #401
Signal Hill, CA 90755
Rose Terrace (RT) Subdivision
New Listing - 2 weeks online
$524,900
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,400
SQFT
1832 Orizaba Avenue
Signal Hill, CA 90755
Other (OTHR) Subdivision
$523,900
Townhouse For Sale
Active
2
BED
3
TOTAL BATHS
1,743
SQFT
2298 Rose Avenue #109
Signal Hill, CA 90755
Rose Terrace (RT) Subdivision
Price Change - 4 weeks ago
$510,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,646
SQFT
1923 Molino Avenue #204
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
Price Change - a week ago
$509,000
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,419
SQFT
1999 Stanley Avenue #9
Signal Hill, CA 90755
Villa de la Reina (VDR) Subdivision
New Listing - 6 days online
$499,000
Townhouse For Sale
Active
2
BED
3
TOTAL BATHS
1,743
SQFT
2298 Rose Avenue #101
Signal Hill, CA 90755
Rose Terrace (RT) Subdivision
Open House 08/24 at 11AM
$495,000
Condo For Sale
Active
3
BED
3
TOTAL BATHS
1,948
SQFT
2699 Skyline Drive
Signal Hill, CA 90755
Skyline Villas (SKYV) Subdivision
$449,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,060
SQFT
2500 E Willow Street E #110
Signal Hill, CA 90755
Willow Ridge (WD) Subdivision
New Listing - 4 days online
$435,000
Condo For Sale
Active
2
BED
3
TOTAL BATHS
1,304
SQFT
2240 N Legion Dr. #205
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
New Listing - a week online
$425,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,171
SQFT
2101 E 21st. #304
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
Open House 08/17 at 11AM
$420,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,179
SQFT
2501 Temple Avenue #318
Signal Hill, CA 90755
Other (OTHR) Subdivision
Open House 08/18 at 1PM
$382,999
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,179
SQFT
2501 Temple #208
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
$379,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,193
SQFT
1460 E Willow Street #202
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
$349,999
Condo For Sale
Active
1
BED
1
TOTAL BATHS
886
SQFT
1903 Temple Avenue #226
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
New Listing - 4 weeks online
$349,900
Condo For Sale
Active
1
BED
1
TOTAL BATHS
837
SQFT
2500 E Willow Street #107
Signal Hill, CA 90755
Willow Ridge (WD) Subdivision

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