Buying Your First Rental

When buying your first rental property, you should ensure that it is the right one for you. This subject is often overlooked when you try to get results by making property investments. Rental property investment can be useful, but you must choose 3 things really well:

1. Your rental house.
2. Your agent.
3. Your location.

Here are a few things you can consider as a first time home buyer:

 Location: You must have heard it before that real estate is all about the location. This is even more important while buying your first rental property. If you plan to purchase a multi-family home and then to rent it out, you must find a place with a healthy and booming rental market. Rental houses in college cities and towns are a great idea! Most students prefer living either off campus or in the city in which they went to college. Other locations where rental houses are a good investment option are cities in general.(people prefer living close to where they work)
 Your Agent: You can also do individual research, but its better you hire an agent to do it professionally. When buying your first rental property, you can have an agent show you the rental houses in town. Then you can get a grasp on the market values of different houses of different sizes. Also give great attention to detail, while buying your first rental property. You need to pay attention to the amount of renovation done. A better renovated house is a better rental property investment than a larger house in a worse condition.
 Set up a budget: Before buying your first rental property, you need to fix up a budget for yourself. If you end up buying a rental house with a fixer-upper, you may not spend enough money initially. However, once you own the property, expect to arrange for some investment property financing to spend for repairs. When buying a fixer-upper, you as a first time home buyer must bring a knowledgeable contractor with you to estimate the repair costs.
 Get pre approved for a mortgage: You need to understand that mortgages for property investments are much more than residential property mortgages. Before buying your first rental property, you need to be aware of the fact that the down payments are often enormous.
 Know your tenant: While buying your first rental property, you need to know the people in and around the area. it does not matter if the rental house is in an area which is going to appreciate. You must ensure the people residing in your rental house are the kind who will treat your property with respect. So, you must try buying your first rental property in an area where you won't attract the wrong kind of renters.
 Motive: There is a motive behind every act. So, while buying your first rental property, try to find out why the seller is selling the house in the first place?

Buying your first rental property is not a big deal, if you understand the things we discussed above.