Basic Information and Advice for Purchasing Your
First Investment Property
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First, you need to think long and hard about whether you should buy an investment property.
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After all, it might be the biggest single financial outlay you ever make. Start by looking at the advantages.
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You need significant cash flow to invest in a property, you’re responsible for repairs and maintenance
Determining Whether It’s Right for You
Looking for a Good Property 01
The property itself can make or break your investment. For the sake of starting out strong, try to find a property that doesn’t require expensive repairs.
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You need to consider any amenities you will include as well. For instance, guests will expect fast Wi-Fi. So, plan to set up 4G internet, which is really fast and can reach all corners of the home.
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You also might want to think about things like a pet policy and some security measures.
Down Payment and Credit Score
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When purchasing an investment property, it’s important to know what you’re getting into as far as the financing process goes.
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MillionAcres explains that you will need a credit score of at least 640 to purchase a single-unit property with a fixed-rate mortgage, which will require a 20% down payment.
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If you go with an adjustable-rate mortgage, you can opt for a 15% down payment on a single-unit property as long as your credit score is at least 620.
Managing the Property Finally, once you’ve purchased your investment property, you will need to keep it in tip-top shape. This includes everything from major and minor repairs to landscaping to deep cleaning.
After all, no one wants to stay at a home that hasn’t been well-maintained, and you have a responsibility to keep the property livable.
Knowing what you’re getting into will help you prepare appropriately and make decisions that equate to positive outcomes, rather than financial misadventures.
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