By: Ari Taylor
With the current rent prices climbing higher and higher, you may have asked yourself, “Why don’t I buy a multi-family and reap the benefits?”
Here are some things to consider when planning to become a landlord:
Are you in the know? Have you done your research on local laws for landlords and tenants? Do you know the market rents in your area?
Is the property you are considering already rented? Are there leases? Do the tenants pay on time and in full? What conditions are in the lease such as rules around pets, visitors, shared outdoor space and parking?
Are you prepared to do repairs and upkeep for yourself and the tenants? If the utilities are separate, can you replace multiple water heaters?
Can you afford the full mortgage if a unit is unrented or needs rehab?
How will the additional income affect your taxes?
Can you do minor repairs yourself?
Owning an investment property can be great, but it is another job. Get all of the info before you jump in!
Ask your realtor about the capitalization rate and get the tenant history. Ask if the property is in an area where people want to rent (such as being close to public transit). Know the laws and know yourself! The income may not pay off in the first year, so treat investment properties like a business, because they are!
Questions about investment properties? Call today!
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