5 Tips for Buying Your First Investment Property
It doesn't have to be scary!
Posted: October 06, 2020 by Jessica Wimberly
Buying your first rental property can be super scary—but it doesn't have to be.
If you’ve been reading, researching, and chatting it up about investing in a rental, here are a few thoughts to throw into the mix:
1. Make sure you’re okay being a landlord.
When things break, flood, drip, or fall, you’ll be the one your tenants call. Will you handle repair and maintenance yourself? Or will you hire a contractor? Be honest with yourself about what it takes—and what it costs—to be a landlord.
2. Watch out for rental restrictions.
Companies like Airbnb and VRBO are hugely popular, so much so that many areas have passed short-term rental restrictions. You’ll want to keep that in mind when thinking about where to buy property.
3. Secure a downpayment.
To purchase an investment property, you’re going to need a large down payment. Because PMI isn’t available on rentals, you’ll need at least 20%.
4. Start with a single-family home.
A single-family rental requires less maintenance than multi-family or commercial, plus there’s less wear and tear to handle.
5. Buy a rental with outdoor space if possible.
Renters love private outdoor spaces—especially for their pets. A fenced yard, spacious patio, or screened porch will help your property stand out from the rest.
Our agents love working with first-time investors—it’s such an exciting journey! If you’re looking to get into the rental property business, give us a call. Our experienced agents would love to help!
Bossier City Office 318-747-5411
Shreveport Office 318-861-2461