Buying Your First Investment Property

Buying Your First Investment Property

There are many things you will want to consider when you start discussing the purchase of your first investment property. There are many different paths to revenue when purchasing real estate and you need to decide which path makes you most comfortable. Different loan options are also available based on which type of investment property you decide to purchase. Below are a few of the different ways in which you can create revenue through the purchase of an investment property.
Long-Term Rental: A long-term rental would involve purchasing an investment home and then renting it out with either a 1-year, 2-year or longer lease structure. This can generate consistent revenue and allows you to screen for the best potential renters to take care of your home.
Short-Term Rental: Short-term rentals would fall into the Airbnb category. These types of homes are great because you can stay in them yourself when they are not rented out. The daily rate of an Airbnb is also much higher in revenue than with a long-term rental. However, this type of a rental typically puts more wear and tear on your home as many people come through, no screening is involved in who stays in your home, and you must furnish it yourself.
Flip: Flipping a fixer upper is a great way to make a quick profit. While this can be a scary option because you want to make sure that you make smart decisions on your purchase and stick to your budget for renovations, the rewards can be endless.
Different loan opportunities are available for a “second home” rather than an “investment home.” You will want to make sure that you receive advice on the rates and regulations surrounding the two different categories. If we can help advise you on the best way you obtain an investment property in Moorpark or the surrounding areas we would love to help. Please feel free to reach out to our team at any time.