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:

No Results Found.

$1,390,000
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,850
SQFT
4208 Tulane Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 4 weeks online
$1,295,000
Multi-Family For Sale
Active Under Contract
0.1818
ACRES
LOS ANGELES
COUNTY
5245 E Carson Street
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 3 weeks online
$1,295,000
Single Family Home For Sale
Active Under Contract
5
BED
4
TOTAL BATHS
3,338
SQFT
4341 Montair Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
$1,099,999
Single Family Home For Sale
Active Under Contract
4
BED
3
TOTAL BATHS
2,700
SQFT
4550 Graywood Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
$1,049,000
Single Family Home For Sale
Active Under Contract
4
BED
3
TOTAL BATHS
2,331
SQFT
4167 N Greenbrier Road
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
Price Change - yesterday
$949,000
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
2,242
SQFT
4619 Sunfield Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
$895,000
Single Family Home For Sale
Active Under Contract
5
BED
4
TOTAL BATHS
3,398
SQFT
4457 Hazelbrook Avenue
Long Beach, CA 90808
Lakewood Village (LKVL) Subdivision
New Listing - 2 weeks online
$675,000
Single Family Home For Sale
Active Under Contract
3
BED
1
TOTAL BATHS
1,100
SQFT
4805 N Bellflower Boulevard
Long Beach, CA 90808
Lakewood Village (LVD) Subdivision
$629,000
Single Family Home For Sale
Active
3
BED
1
TOTAL BATHS
1,210
SQFT
4817 Lakewood Boulevard
Lakewood, CA 90712
Lakewood Village (LKVL) Subdivision
New Listing - 2 weeks online
$799,900
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,068
SQFT
1427 E 33rd Street
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
Price Change - 6 days ago
$530,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,648
SQFT
1957 Temple Avenue #205
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
$510,000
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,482
SQFT
1988 Junipero Avenue #2
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
$450,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,116
SQFT
2601 E 19th Street #14
Signal Hill, CA 90755
Pacific View Terrace (PCV) Subdivision
$445,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,036
SQFT
2599 Walnut Avenue #138
Signal Hill, CA 90755
Other (OTHR) Subdivision
New Listing - 4 weeks online
$439,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,143
SQFT
2500 E Willow Street #101
Signal Hill, CA 90755
Willow Ridge (WD) Subdivision
$425,000
Condo For Sale
Active
2
BED
2
TOTAL BATHS
1,179
SQFT
2501 Temple Avenue #209
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
New Listing - 3 weeks online
$388,999
Condo For Sale
Active
2
BED
1
TOTAL BATHS
900
SQFT
2525 E 19th Street #24
Signal Hill, CA 90755
Signal Hill (SH) Subdivision
New Listing - 3 days online
$335,000
Condo For Sale
Active
1
BED
1
TOTAL BATHS
801
SQFT
2599 Walnut Avenue #108
Signal Hill, CA 90755
Other (OTHR) Subdivision

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