Owning a rental property can feel daunting and costly. However, you can own your first Dublin rental property in a short time with a planned approach. Having a rental income to augment your income can aid you in achieving your life goals. Below are the main elements for locating and buying your first rental property.
Research
Gather as much information as you can concerning the place you want to invest in. Look for key characteristics of the area that could entice residents, like proximity to public transit, a nice view, a park, or shopping. You also have to read up on tax laws and mortgage rates as these can provide you a solid approximation as to how much you need to budget for your future investment as well finances needed as down payment and mortgage costs for your first Dublin rental property.
Finance
There are a variety of types of options you can employ when looking to finance. Finance options or rental property loans could vary from those available to owner-inhabited home mortgages. The following are a couple of different types of financing options you might use:
- Cash – use cash to acquire a rental home
- Mortgage – pay a down payment and then monthly mortgage payments
Note: there are various types of mortgages; research to ensure the loan fits your needs and finances - Portfolio lenders – access an adapted portfolio of mortgages offered with flexible terms specific to homeowners
- Federal Housing Administration (FHA) loans – while FHA loans are meant for those aiming to stay on the property, there are some options offered that allow FHA-financed homes to have more than 1 unit (up to 4); with FHA, you could have a rental property unit as well as live on the property
- 203K loans – this loan takes into account the cost of home repairs and upgrades in the loan amount; this can be helpful when hoping to renovate a property and rent the place out
Find a Property
Connect with a native real estate agent to see where there are available properties in your targeted area. You should have a general idea of the specifications of the property and your spending budget. Make sure to establish limits and expectations when property hunting. Once you get the right purchasing point, you can determine your long-term profitability.
Property Assessment
In this process, a crucial step not to be missed is having a property assessment of the location to determine its habitability and needed repairs or replacements in making the home rent ready. Before buying, you can ask a Real Property Management office to examine the rental home to give insight on its rentability and to make suggestions for upgrades and whatever else is needed. They can also recommend an expert home and pest inspector if necessary. Within this critical part, you should be able to establish an estimate as to the home’s current and potential performance.
Want a free assessment of your potential rental property? Please contact Real Property Management One today by filling out the form online or by calling us directly at 925-794-8339.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
