Are Rental Properties a Good Investment?

You don’t need to be wealthy to start investing in real estate. In fact, purchasing investment property is possible for most people.

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We’re often asked about the concept of owning rental property, which may range from a residential double to a small multi-family building. People often ask whether it is something only the wealthy can afford or something that anyone can.

Honestly, the purchase of additional property for investment purposes is attainable for most people. The criteria for lending is a little different in that a larger down payment is required and the qualifying ratios are a little different, but with regard to other factors like interest rates, investment property rates are roughly the same as those offered for owner-occupied housing.

Mortgage companies will generally charge fees that are higher than residential transactions to compensate for the additional risk involved, but in the end it’s a small price to pay for all the benefits.

Investing in real estate is for everyone.

Another question we are often asked by investors is, “Who will take care of the property and how do I get tenants?” There are different answers for this depending on the personal time and effort you want to put into the property. Many first-time investors are DIY-ers in that they will advertise for tenants, do all of the maintenance themselves, and are generally very hands-on with the property.

Others prefer to hire a property management company to take care of everything. This does add an extra layer of cost to ownership, but it puts a professional in charge of the day-to-day operations. Since we have members of our team that belong to the local commercial real estate exchange and have full access to the local MLS system for investment real estate, we can set you up with searches that match the criteria of the kind of property you are looking for.

If you have any questions for us or would like to have a consultation to discuss investment strategies, give us a call or send us an email. We would be happy to help!