Most important thing you should do first is see how much you qualify for. Once you have that information, you should meet with a real estate professional to discuss your options and take your time in deciding..don't rush into anything.
Please make sure you are working with a knowledgable professional..we are all here to assist you. Feel free to call or email me anytime should you need further assistance :)
Owning investment property is starting your own small business. It takes time and effort to properly manage, even using professionals. Here is what I advise to help you.
1) Meet with your tax pro to discuss the short and long term considerations and how they apply directly to your tax situaion.
2) Meet with a financial adviser to discuss your long term financial needs (cash flow versus asset apprecation). This will help determine the type and location of the investment property you are going to purchase.
3) Meet with a realtor/property manager to discuss the ins and outs of owning investments after step 1 and 2 are perfomed. This is where the rubber meets the road. An experienced agent or PM will help reconcile your wants with your needs and help you focus to find that right situation.
We work with investors world wide
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
A half hour on the telephone and $15 for a credit report will give you all the info you need to make sure you can get the interest rate and payment you expect when you find that perfect investment property.
1. Will you live at the property? For example, if you buy a duplex/triplex/quadruplex, are you planning to live in one unit? The down payment and interest rates may6 differ for an owner-occupied versus non-owner occupied purchase
2. Are you looking for a fixer to flip? And do you have the financial resources to make the repairs? You can look into a 203K loan.
3. What type property? Condos and townhouses typically have HOA dues. So if you're planning to rent out the property, you should factor in the HOA monthly payments in addition to going market rents
4. If you haven't talked with a lender yet --- that's the first thing you should do because you will be asked to submit documentation regarding your income, debts, financial reserves, etc. before the lender can determine your credit-owrthiness (this is assuming, of course that you need to get a loan to buy).
Lots of questions to ask..but the bottom line is talk with your lender and realtor first before you look at property. You need to know how much you can afford, what your comfort level is in terms of financial obligations.
Step 2: Meet with a real estate broker who works with investors to get an idea of what type of properties you would be interested in and the typical price ranges for those types of properties. Talk about investment strategies and management options most appropriate for your situation. This is just a research step, don't start looking at specific properties yet!
Step 3: If you are not planning to pay cash for the properties you buy, meet with at least 3 different lenders to get a feel for what type of loans are available to you. Assemble a package of basic information that will allow these lenders to get specific in describing what they can offer you. Your goal is to get pre-qualified so that when you put an offer in on a property you have reasonable assurance that (if the property qualifies) you will get approved for the mortgage. Don't expect to get pre-qualified on the first visit to each lender. This is another research step. If you like a lender and their programs, you can come back with your total qualification package later.
Step 4: Get pre-qualified. Go back to the lendors you like, get specific on the numbers, request a pre-qualification letter.
Step 5: Go back to your broker and start the search process.
One thing people, especially some selling "programs' to investors, tend to forget is this, a good realtor is the best resource you will ever have! They have done this before and they know both the correct path and the pitfalls. they know when to exercise caution and when to go full steam ahead. They know the process, they have access to the partners and resources you will need and they know what works and what doesn't in your state. And they have a fiduciary duty to YOU to do what is right for YOU even if it is not in their own best interests (i.e., maximizing their commission). No one other than your attorney has that legal obligation to you, their client. A good realtor is worth their weight in gold!