rhsjohnson23, Home Buyer in Charlotte, NC

Townhome as rental investment

Asked by rhsjohnson23, Charlotte, NC Mon Feb 24, 2014

I am considering buying a townhome to live in for a few years with an intention to keep as a rental unit for the future. I am looking in the UNCC university area, as I am a graduate student there. Is buying a town house a good investment if you are planning on renting it out in the future? Does the university area have a high demand for renters? Can you make money by renting out a town house?

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Townhomes can be a great rental property. First you need to make sure that there are no restrictions on renting it out though. The purchase price and financing like all investment properties needs to be profitable with the amount of monthly rent possible.
0 votes Thank Flag Link Mon Feb 24, 2014
There is always a high demand for rental property in the University area. You are smart to look at investing as a means to beginning to build wealth. You absolutely can have a positive cash flow, but you need to make certain that your buyer agent is experienced with working with investors. Your buyer agent much be experienced in preparing data for you so that you can weigh out each property as to whether or not it would make sense to buy with future rentals in mind. Not only must you analyze the amount of rent you might take in, but also factor all the expenses you will have (mortgage, taxes, insurance, HOA Fees + the cost of vacancy.

Owning rental property is such a great investment because it is the only investment vehicle in which you do not have to put 100% down AND, once rented, you will have someone else paying your mortgage for you PLUS you can enjoy a monthly income from your property.

I suggest you read "The Million Dollar Real Estate Investor" by Gary Keller, as well as "Hold - How to Find, Buy and Rent Houses for Wealth" by Steve Chader et al. to help you plan and prepare for becoming a real estate investor.

Best success!

Kathleen Turner, ABR, CRS, EPro, Certified Paralegal
The Kathleen Turner Realty Group
Keller Williams Realty
704-609-2688
http://www.BuyAHomeInCharlotte.com
2 votes Thank Flag Link Mon Feb 24, 2014
Townhomes can make great investments, depending on the price, location and demand. With HOA's typically taking care of most of the exterior of the property, they are very low maintenance for an owner/landlord. The University area is usually in high demand due to the need for student housing, and once the proposed light rail is complete up to that area, I'm sure there will be even more demand.

Contact me directly if you'd like help with your search!

John Siddons
john.siddons@bhhscarolinas.com
http://www.SearchCharlotte.com
1 vote Thank Flag Link Mon Feb 24, 2014
Hello,

These types of properties CAN be a very good investment, but also can be problematic. What you need is an objective agent with your best interests in mind whom also has experience in rentals in the area you are considering. You also should start by speaking with an experienced lender that will take the time to properly structure your financing to be appropriate for you now as well as your long term plans.

I am available to help you at your convenience if you wish.

I can do a full underwriting approval ahead of time if need be and I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer above, consider clicking on a “Thumbs Up” or “Best Answer”

Regards,

Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:

http://www.loansfromrob.com/quote/
1 vote Thank Flag Link Mon Feb 24, 2014
Have you checked out the "rent" section at the top of Trulia? There may be something in there. Otherwise you could also check Craigslist.com to see what they have for posted for rentals.
1 vote Thank Flag Link Mon Feb 24, 2014
To answer your question about a town-house being a good investment, well it depends. The University area does have a high demand for rentals. Finally, yes you can make money by renting a town house but you could also lose money. The reality is that nothing is perfect! The market goes up and down. You can greatly reduce the chance of losing money by working with a qualified agent. I encourage you to do your research. If you don't know where to start or need help, call an agent that knows the market. I wish you the best!

If you have more questions concerning real estate, feel free to email me at Juliusgreen@kw.com.
0 votes Thank Flag Link Mon Feb 24, 2014
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