What are some of the things to consider when buying a second home for rental income?

Question

We are looking into buying a second home to rent out. We've looked into the loan possibilities and insurance- what other things should we begin considering before we get too far along with the idea?

Answer 1

With prices so low right now, you are smart to be thinking of investment property.

I would figure out:

1. Your preferred location.
2. Your budget to spend.
3. Have a local realtor help you with real estate tax, insurance, association fees and local rental rates, local inventory (is there a particular glut or a desperate need for certain kinds of properties), local rental restrictions, etc., so you can factor that in to your decision.
4. Talk to your accountant about what and how much you can write off on your taxes.
5. Be prepared to pay for the times when it is not rented, and for repairs, marketing the property, and cleaning it up for the next renter in line, plus background and credit checks, and a separate banking account to hold the deposit money.
6. Seek the advise of a good real estate lawyer on the correct way to draw up a lease - to protect you and your property.
7. Sleep on it. Pray on it. Go for it.

Good luck and best wishes.

Answer 2

When you say a second home for rental, do you mean a second home that you will sometime reside in or do you mean a second home strictly as a rental.

I would consider a duplex as most lenders consider a duplex the same as a single family house. As a matter of fact 1-4 units are normally considered as a single family home for mortgage purposes.

You should check and see what type of mortgage you would be qualified for, the approximate interest rate, as well as the amount you plan to pay for this rental.

Now you should figure out the income of the property and if you will have to come out of pocket with any of the monthly mortgage,insurance or taxes.

There is also up keep of the property that should be added to the equation.

You might also check with the Apartment House Association in your local area for additional information. Since you are now gonna be a land lord you might consider joining this group as they have the necessary rental agreements, eviction forms, means to run credit reports and other things necessary for you to be land lords and will supply you with limited legal advise.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

1 CAN YOU PICK A GOOD TENNENT, ARE YOU ABLE TO DEAL WITH A BAD TENNENT,
2 ARE YOU SOMEWHAT HANDY? PAINTING FIXING A LEAKING TOLIET? IF YOU CAN, THIS WILL SAVE YOU $$
3. DO YOU HAVE THE CASH RESERVES TO COPE WITH A LONG VACANCY, THINK ABOUT YOUR AREA ARE THEIR A LOT OF HOUSES FOR RENT OR FOR SALE?
4 CAN YOU PURCHASE A HOUSE AND GET A POSTIVE CASH FLOW?? IT'S NO FUN SUPPORTING THE RENTAL EVERY MONTH.
5 IT CAN BE VERY REWARDING $$ WISE IN THE LONG RUN

Answer 4

Rent To Own Home : http://RentToOwnHome.uzaev.com/?nQdc