Five tips for buying your first investment property

Buying your first rental property can be super scary—but it doesn't have to be. ⁣⠀
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If you’ve been reading, researching, and chatting it up about investing in a rental, here are a few thoughts to throw into the mix: ⁣⠀
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1. Make sure you’re okay being a landlord. When things break, flood, drip, or fall, you’ll be the one your tenants call. Will you handle repair and maintenance yourself? Or will you hire a contractor? Be honest with yourself about what it takes—and what it costs—to be a landlord.⁣

2. Watch out for rental restrictions. Companies like Airbnb and VRBO are hugely popular, so much so that many areas have passed short-term rental restrictions. You’ll want to keep that in mind when thinking about where to buy property.⁣⠀

3. Secure a downpayment. To purchase an investment property, you’re going to need a large down payment. Because PMI isn’t available on rentals, you’ll need at least 20% (most lenders require 25%, but there is a 15% down renovation loan available for single unit properties — ask me for details!)

4. Start with a single-family home. A single-family rental requires less maintenance than multi-family or commercial, plus there’s less wear and tear to handle. ⁣⠀

5. Buy a rental with outdoor space if possible. Renters love private outdoor spaces—especially for their pets. A fenced yard, spacious patio, or screened porch will help your property stand out from the rest.⁣⠀
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I love working with first-time investors—it’s such an exciting journey. If you’re looking to get into the rental property business, give me a call. I’d love to help.

Laurie Christofano, Realtor | RE/MAX In The Village | 630-248-1976 | Laurie’s Website

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