If you are considering buying your first rental property, you are probably expecting to be able to cover your payments for the property and perhaps have enough left over to provide some income.
Be sure you have considered all your expenses before you make your final decision. Each property may require a different mortgage payment, as well as have a different rental rate you can get. However, that isn’t the only consideration.
Additional Costs to Consider
It’s also important to know the rest of the expenses that will be involved with each property you are considering:
- In addition to mortgage payments, you’ll have taxes and insurance which can be quite different for each property.
- There’s also routine maintenance, which for some properties might include landscaping, or be more costly because of the age or condition of the property.
- Another consideration is the likely length of time a property would remain vacant between renters, which depends on location, type of property, and other factors.
- Of course, you should also budget for unexpected emergencies for all properties.
Fair Housing Laws
In addition to these financial considerations, be sure you become familiar with laws regarding Fair Housing, and with the best practices for attracting and keeping good tenants, and what to do if you should have to evict.
Once you have all the facts, you can make an informed decision. An experienced tenant screening company can also assist you with compliance with all credit reporting laws when you screen your tenants.