Preparation and expertise are key components towards success. Developing a plan before purchasing an investment property will place you in the best light to reach your investment goals. Your investment plan should include your goals and the steps you will need to take to reach them. These five questions to ask yourself from the beginning are perfect starting points for a long-term strategy filled with success.
What is the current market rental value of the property?
Not only do you need to look at what's rented, but you need to look at what's actively being marketed. That's going to be your competition! Don't forget to look at vacancy rates.
Is the property already tenant-occupied?
Does the current landlord/owner have a tenant ledger reflecting payment history? Getting cash flow statements is not a bad idea for verification.
Does the property need to be renovated?
It is important to know how much money you will need to put aside for repairs that need to be done immediately after purchase.
How is the property being taxed?
You will need to know if the property is currently being taxed at 4% (primary residence) or 6%. As a non-owner-occupied property, your taxes will be calculated at the 6% assessment rate. Are you looking to expand your investment portfolio? Or start your investment journey? Then Oak Trust is the right team for you. We provide fast and strategically focused results.
Will you secure a loan for your investment property?
Make sure to shop around for the best lender and loan options on a secondary/investment property. Are you looking to expand your investment portfolio? Or start your investment journey? Then Oak Trust is the right team for you. We provide fast and strategically focused results.
