Are you a wanna-be investor? Here are some tips for getting started with investment properties:
Figuring Out Your Financing
Before deciding where you want to start looking or what type property you want to invest in, you need to take a look at your finances. Even if you have cash, you may not want to pay all cash on your first property because you could use that money as a down payment for SEVERAL rental properties. Most lenders require 20%-25% down for investment purchase. If you don’t have this cash sitting in your savings account, there are a couple other ways to acquire a down payment such as:
- Using a home equity line of credit on your primary residence
- Taking a withdrawal from a retirement account
Some lenders are more investor savvy than others, so you want to work with an experienced lender. Once you know what you can afford, you’ll be able to determine what area and what type of property to purchase.
Finding a Realtor
If you choose a realtor who has experience working with investor clients, they can help you find the areas that have the best return on investment. Leslie Lowery has worked with many investors in the Denver-Metro area, and would easily be able to help you determine where you want to buy.
Fix-n-flip? Buy to rent? Air-BnB?
Each of these options can be successful depending on the property, and how much time you want to invest. Speak with your realtor, lender, and financial adviser to determine what option would fit your lifestyle right now.
Watch our video below to see our most recent investment property!