4 Misconceptions of owning Investment Properties

Posted byashleyhurlburtPosted inUncategorized

Here is an overview of the 4 misconceptions I cover in the video:

  1. Owning rentals is alot of work. At RE/MAX we offer a property management team who can completely run the properties, field the tenants and help you with the entire management.  They merely send you a check.  It is truly a BREEZE when you use RE/MAX Property Management.
  2. I need to get a great deal and a discounted price in order to buy a rental home.  It is really important all buyers realize that as long as our inventory stays so low, there will be very few homes priced at a “good deal.”  It truly doesn’t mean they are a bad investment.  Most rentals create return on investment while owning them.  More importantly, the value will rise as inflation rise allowing you to offload them at hopefully a much higher price. 
  3. I can’t get a loan for a rental investment.   Although rental investments do work differently in the lending world, many investors get loans for investment properties.  I am happy to have you discuss this further with a preferred lender to decide if you qualify for an investment loan for a rental property.  
  4. Ok so I can get a loan, Can I get one with no money down?  Unlike traditional first mortgages where the home is your primary residence, investment loans work a little differently.  Usually speaking a lender would want a down payment on an investment property.  Many buyers can get into a home now, with only closing costs and very little to no down payment, but this is usually true only for primary residents, not investment loans.  It is always in your best interest to dig deeper with a preferred lender to discuss all your options, but be ready to have a little cash to put down.  Remember, it’s an INVESTMENT so the hope is you get that money and then some back when you sell. 

Check out my other blog post for more details and additional ways to hedge against inflation, and let us know if you’re ready to make a real estate investment.

As always it is a joy and a pleasure to help you with any real estate needs.  Let me help you “Love Where You Live”. 

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