Toni Gale

  • Home
  • About
  • Blog
  • Testimonials
  • Contact

4 Considerations for Buying an Investment Property

February 26, 2015 by Toni Gale

4 Considerations for Buying an Investment Property

If you have been considering buying an investment property or two, it’s important to understand the entire home buying process from the investment perspective. While owning multiple investment properties can help you generate a healthy income stream, there are several key considerations to think about before you buy an investment property. It’s also a good idea to speak with your real estate agent as well as your financial advisor to get the answers to any questions you may have before you begin the process of becoming a landlord.

1. Startup Capital

For a landlord, the startup capital needed to purchase an investment property includes initial purchase cost, remodeling costs, and any repairs that will be incurred during the duration of each tenant. Many states have strict requirements that must be met before you are able to rent out a property. It can cost thousands to bring a building up to code after it is purchased or to make necessary repairs after a tenant moves out.

2. Rent Collection

Along with great tenants who pay on time without trouble, there will always be those who are late and those who fail to pay at all. An effective rent management strategy is based around these two following points:

  • Be prepared to move forward with an eviction of any problem tenants that cannot be resolved.
  • Be knowledgeable and educate yourself on eviction laws in your state.

3. Repairs and Upkeep

Ignoring small repairs will always lead to bigger, and more expensive problems. If you aren’t sure whether you can afford to pay for home repairs, then it’s wise to reconsider a property investment until you can. Here are a few tips to managing property repairs:

  • Ensure the tenants you lease to are responsible and will notify you should a problem arise.
  • Catch small problems and make repairs before they have a chance to develop into bigger ones.
  • Inspect your properties regularly, especially before a new tenant is scheduled to move in.

4. Financial Management

Any successful investment property that is generating a positive, monthly cash flow can quickly become a burden should you mismanage your finances. While it might be rare for one property to sit vacant longer than a few weeks, another might be empty for several months. In order to keep your investment property profitable, it’s important to save enough during periods of full occupancy to give you plenty to work with during slower months.

If you are in the market to purchase an investment property or if you’re looking for a new home, today’s market in the Garland, Rowlett and Rockwall areas offers many opportunities for potential buyers as well as those interested in becoming investors. Please give me a call, I would be glad to help you.

 

[sws_grey_box box_size=”90%”] The material provided is for informational and educational purposes only and should not be construed as legal, investment and/or real estate advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors. [/sws_grey_box]

 

Filed Under: Business Interests, Buyers Tagged With: buying, investment

  • Email
  • Facebook
  • Instagram
  • Twitter

Recent Articles

  • Relocating to Rockwall, Texas?
  • Home For Sale…Sold
  • Signs You Are Ready to Sell
  • Do You Really Need a Real Estate Agent?
  • My Thoughts on Buying or Selling A Home in Garland, Rowlett, or Rockwall
  • 3 Ways to Have a Successful Closing
  • Follow the Data to Find Your Way Home
  • Pros and Cons: FHA versus Conventional Loans
  • Politics, Religion, and Real Estate
  • Ensuring a Positive Home Sale
  • 5 Things Sellers Need to Sell
  • How Loan Approval Helps the Buying Process
  • Improve Your Credit Score Before You Buy
  • How to Find Your Dream Home
  • What’s in a Street Name?
  • When Exactly Should I List My Home?
  • Garland, Rockwall and Rowlett Residential Real Estate Trends – March 2015
  • How Big Should My Down Payment Be?
  • 4 Considerations for Buying an Investment Property
  • Holding the Title of Your Home

Topics

  • Business Interests
  • Buyers
  • Communities
  • First-Time Homebuyers
  • Market Update
  • Real Estate Update
  • Rockwall
  • Sellers
Tweets by @Toni_Gale_
Toni Gale | Your Real Estate Professional | Serving Garland, Rowlett, and Rockwall areas
fan2
Toni Gale | Your Real Estate Professional | Serving Garland, Rowlett, and Rockwall areas
fan1

Buying

Toni Gale | Serving the real estate needs for Rowlett, Garland, Rockwall

Selling

Toni Gale | Real Estate Professional | Serving Garland, Rowlett, Rockwall

Free Mortg. Plan

I LOVE Referrals!

Toni Gale | Your Real Estate Professional | Serving Garland, Rowlett, and Rockwall areas
" Toni is the best Realtor we have ever worked with. We would not hesitate to use her in the future and highly recommend her to others."
Dr. Randy and Patty Buck

I am a highly skilled market trend leader providing dedication, integrity and value-driven service to meet all of your real estate needs.

Call: 214-642-1375

Email: toni@tonigale.com

  • Email
  • Facebook
© 2021 ToniGale.com | Texas Real Estate Commission: CLICK HERE for TREC information and resources
Toni Gale is a licensed real estate agent (License #0578288) with Keller Williams Realty, Inc. | Keller Williams Realty, Inc. is a real estate franchise company. | Each Keller Williams office is independently owned and operated. | Keller Williams Realty, Inc. is an Equal Opportunity Employer and supports the Fair Housing Act.