For some people, investing in properties they rent out can be a good way to supplement their primary incomes, and can be an excellent way to work towards retirement security through building equity and retirement income. Most of these people still maintain a regular full-time job to ensure they have money to cover their home loans on their rental properties since the rental real estate market can fluctuate and change.
It is not uncommon for a landlord to have a rental home sit vacant for a month or two in between tenants, during which time mortgage payments still need to be made on time. The key thing to remember, if you are considering buying a home and renting it out, it is a long-term investment strategy.
Most people start off by talking to a mortgage broker or other people they know that own rental homes, and doing some research and reading up on real estate topics. This helps them get a better understanding of how the real estate markets work, how financing multiple homes can be done, and what types of down payments are needed.
If you decide you want to try investing in rental homes, it is recommended to start with a single investment property to make sure being a landlord is for you. TIP: Avoid buying homes that need major repairs before being rental properties, as you may never earn that money back.
It is better to buy homes in good shape that only require minor repairs or maintenance. To learn more about loan programs for buying rental properties, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!