Investing in rental properties
If you are considering becoming a property investor, you may wonder why you should buy a rental and what indicators to look for when trying to find a property. Here are some signs to look for if you are on the fence about investing in a rental that indicate it is a great time to buy!
Low Interest Rates
When mortgage rates drop, it is much easier to make a property produce income. The best place to figure out what kind of interest rate you will get for an investment property is with a lender. Check in with them to figure out how to start the process, and contact an agent to help you start viewing potential properties.
Home Equity
Check in with a local Realtor to see how much your current home is worth! Some investment properties require a high down payment, but low-interest rates, refinancing and knowing your home value can make a difference. For example, if you need to borrow 10%, many homes in good markets can appreciate 10% of their value in just a year, depending on the condition and the location. Chat with a lender to see if you can qualify, and check in with your current mortgage company to discuss your plan.
Scarcity of Units
Do you live in a location where rental units are in high-demand? Maybe your city is growing and the demand for a space to rent is higher than the available properties. If that is the case, now is the best time to find a property to purchase for rental purposes.
Return Rate
If the rate of return in your county is growing, it might be a good time to invest in property. If there is a yearly increase, you can make significant gains over time.
Ultimately, talking to professionals can help you decide if now is the right time to invest in rental properties! Give me a call and let's chat about your options and the current real estate market.
Laurel Jonas- REALTOR®
Northwest Realty Group
2022 N. Government Way Coeur d'Alene, ID 83814
208-758-9000
208homesforsale@gmail.com
208homesforsale.com
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