Investment Property
Buying an investment property has many advantages. The usual intention is to make a profit either via monthly rental income, equity in the property, or both.
Most investors will calculate an expected return on their investment based on the property value and income. Their investment property mortgage is only one factor to consider along with taxes and potential or existing rental income.
There are many advantages of buying an investment property.
- Profit from monthly rental income
- Tax write-offs
- Build equity in the property for future personal or business use
- The stability of owning real estate
- Better return on your invested capital than other investments
- Build equity for use in future investment endeavors
- Improve monthly cash flow
- Add to your retirement income
- And more
In most cases, investors will need or want a mortgage. There are many investment property financing options.
Down Payment
A 20% down payment is required for rental properties
Your down payment can come from –
- Cash on hand
- Borrow against equity in currently owned property
- Line of credit
- Earnings from other investments
- Even a gift
- Invested capital
New Federal Program
The federal government announced on October 11, 2024, a new program to help existing home owners renovate their homes to add rental suites. This new initiative will begin in January 2025. For more details, check out my blog here.
Qualification
Your personal income, business income, investment income potential and existing, and any other types of income you may have are balanced with your monthly expenditures towards qualification.
Sometimes it is a complicated process however, given the long term benefits of owning investment or rental properties its well worth the effort.
As an investment property owner and an experienced mortgage agent, I have the expertise to help you meet your investment goals and am ready to guide you through the process. If you are contemplating buying a rental property or are thinking about refinancing one you already have, lets get in touch.
It's Easy to Get Started!
Whether you are buying your very first home, upsizing, downsizing, or refinancing, I can find the right fit for your unique financial situation.
