What to Consider When Purchasing Your First Investment Property
So you've decided you wanted to invest in real estate?
What should you look for in a rental property? No investment property is perfect, so you must weigh factors and choose an investment property that best suits not only your financial needs, but your abilities as a property owner and renovator.
Look for properties in your price range. Does the property fit your budget when considering rental income and any work that may need to be done? Is the price comparable to similar investment properties recently sold in the area? It is important to establish the property's value in comparison to neighbouring properties. If it is very expensive in a poor neighbourhood, chances are you may have trouble renting it or selling it in the future.
If you want an idea of how much you can afford, contact me here.
This is likely the most important factor when purchasing an investment property. If the property doesn't have enough income to cover expenses and the mortgage payments (if any), it will likely not be a good investment for you. Investment properties ideally should cash flow enough to cover the costs of the property as well as any unexpected costs that come from repairs or vacancies.