When considering a rental property for investment or a vacation home you plan to rent out to offset expenses, it is important to make sure you perform due diligence and are prepared for the task at hand. As a “rental property virgin” buying your first property involves more than just buying a home and renting it out. Here are some tips to help get you started.
1.Find a seasoned Realtor who knows Stuart, Florida’s neighborhoods and communities as well as the surrounding Treasure Coast area. An experienced agent can recommend suitable properties to buy and will be able to provide up to date information about local market conditions, negotiate the best deal, and procure a tenant when the time comes.
2.Check your finances. When financing your rental property or vacation home it is important to ensure there are no errors on your credit report and resolve any problems quickly.
3.Schedule an appointment with your accountant or lawyer. They will point out how becoming a landlord affects you from a legal and tax standpoint.
4.Determine your budget. Your lender or mortgage broker should help calculate the maximum amount you can afford to pay, how much of a down payment will be needed, and get you pre-approved for a mortgage. Estimated closing costs and other incidentals must also be factored in.
5.Visit neighborhoods that interest you at various times of the day and night to get a feel for what the area is like.
6.Be selective http://microbestshop.com/microsoft-windows-7-professional-with-sp1-32-bit-64-bit/. It is important to treat your rental property search as if you were in the process of buying your primary residence.
7.Consider future resale. Features that are a concern to you will most likely affect future buyers as well.
8.Before making an offer ask your agent to provide information about comparable properties in the area. It is important to compare recent sales, price per square foot, area rents, and other relevant information to be sure you are getting a good deal.
9.Schedule a home inspection. Once your offer is accepted (with conditions) be sure to call in a professional home inspector. A home inspection will tell you if the home is safe to live in, identify any problems that need to be addressed, and help to avoid expensive repairs down the road. You may also need to get separate termite, well, septic or other inspections.
10.Establish a reserve fund to cover future repairs, vacancies, etc.
As in any real estate transaction, buying a rental property requires advance planning and that you stay on top of all the activities and details necessary for a successful purchase. Employing a Realtor with a high-quality professional support network will help to facilitate your transaction and avoid missteps along the way.
This post has been authored by Eric Slifkin, REALTOR® serving South Florida’s Treasure Coast. You can reach me at 888-288-1765, or visit my Web site. As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard sign or ad and I will research the property, arrange showings and handle all the details.