Talk to Our Idaho Hard Money Lender Team About Financing
Many real estate investors include rental properties in their long-term investment portfolios.
If you’re considering investing in rentals and are new to the market, there are some essential things to know before purchasing your first property.
4 Things to Know Before Buying a Rental
- Location: Where you buy impacts the return on your investment. Look for properties in areas with high demand and low vacancy rates. You will have better luck renting a home in a safe neighborhood close to amenities, including transportation, shopping, and quality schools. And be aware that the value or demographics of a location can shift over time. Buy in an area central to well-established, more affluent neighborhoods to protect your investment from possible downward swings in property value.
- Taxes: The location of your rental also determines the property taxes you’ll pay, which can vary widely by state, county, and city. Research listings carefully, and make sure the rental income you budget for will cover what you’ll pay in property taxes on any property you might buy.
- Costs: Buying a rental property comes with expenses beyond the purchase price. You must budget for insurance, property maintenance, and unexpected costs from weather-related property damage to appliance breakdowns to tenant issues. Prepare to have funds available for day-to-day expenditures, as well as a reserve fund.
- Laws & Regulations: States and municipalities have landlord-tenant laws to protect both parties. It’s beneficial to know local laws and regulations pertaining to rentals before buying; some are restrictive and can impact your investment and experience as a landlord.
You should know many valuable things before investing in your first rental property. But this short list is a useful starting point!
Our Idaho Hard Money Loan is a Great Financing Option
Hard money loans are the go-to financing source many experienced real estate investors use when purchasing investment properties. If you have available equity and are ready to buy your first rental, come to Gregory M. Russell. Our team of experienced private lenders will help you quickly and easily get the financing you need. Unlike conventional lenders, our approval process is streamlined and stress-free. Your credit and employment history are secondary, and you can have cash in hand within days. Fill out our online loan request form (it’s short and simple!) or call us with questions at 1-888-477-0444.