If you are checking out Vernon real estate for rental properties, the first time buyer has much to be aware of. This can be an exciting time in life and a good chance to earn extra income. Here are some important things to consider before you make your initial purchase.
If this is your first rental property, try to get something as close to your present home as possible. This will make things much easier on you. If your property is close by you can easily travel back and forth when you need to. This is very important as your initial rental property may be a “fixer upper” and you might need to make a lot of improvements.
Check out financing before you shop. Loans for rental properties are not like standard mortgages. You may need to come up with a bigger down payment than you think. However, there may be ways that you can get a property with very little money down.
Consider talking to a real estate professional before you look at properties. These people are in the business of selling properties and will work very hard for you. In fact, many work on a commission only basis and they are not paid unless someone makes a purchase. Professional realtors may able to refer you to a lender that has the best terms or can offer you strategies for getting your property with the lowest amount of money down.
If you are not sure about financing, talk to a mortgage broker. A good broker has access to lending offers that many other lenders do not. They are independent and can offer you a wide variety of terms from many different sources. There is a fee, but in most cases it is worth the money.
When you look at rental units or houses, do the math before you make an offer. For example, you should figure out all of your expenses and subtract them from the amount of rent you expect to receive. You should have sufficient cash flow if you do not wish to operate “in the red” should your property need major repairs.
When you figure out cash flow, do not forget to include the extras that may or may not be included in your monthly payment. Talk to an insurance agent and see what your approximate annual insurance costs will be. Find out what the property tax amount is also.
Talk to your Vernon real estate agent to see if the buyer is motivated and needs to sell. When it is time to make an offer on a property, do not be afraid to make a low offer. The seller may make a counter offer that is higher, but you still have the chance to save money this way.
Once you establish a good working relationship with a dependable Vernon real estate professional, you have someone that is on your side. He or she can make you aware of great deals on properties as soon as they hit the market. This can save you a lot of money, time, and trouble.