“Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors…investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system. With a statement like that, I think, can there ever be a better time to pursue owning investment property than right now?
Since investment property held by real estate investor’s account for 22% of all real estate transactions, and with the amount of housing available, including foreclosed properties, there hasn’t been a better time to own or expand your portfolio of properties. Whether you are looking to upgrade your home, purchase a vacation home or acquire rental units, 2009 could be the year you have been waiting for. With decreased values and a wide variety of real estate available, it’s no wonder why anyone with any available cash is not seeking out investment properties.
Here are some considerations when purchasing real estate as rental property:
- Make Sure You Buy a Rental Property that You Can Afford
One important difference between buying rental property and other types of investment is that you will most likely be taking a loan to pay for it. When it comes to choosing a rental property, never bite off more than you can chew. If you are a first landlord, it’s always a good idea to start small so that you can afford to make mistakes along the way.
- Choose the Right Neighborhood for Your Rental Property
The neighborhood of your rental property plays a crucial role in the supply and type of your potential tenants. If you are buying rental property for low income groups, then it makes sense to find a rental home that is located near a college or industrial estate. This way you will have a steady supply of potential renters just around the corner.
- Choose the Right Mortgage Loan for Your Rental Property
Buying rental property means having to get your hands on a mortgage loan. The interest rates charged by your lender can vary widely depending on your credit score, income and amount of debts you owe.
And above all, the old adage holds true for investment property as it does for your primary residence, location…location…location. So make sure where you buy today will still be a desirable place for as long as you plan on owning the property.
Tags: buying rental property, financing opportunities, foreclosed properties, investment property
