Our Top Investing Tips for 2022
Hoping to invest in real estate in 2022? No need for cold feet! Here are 5 simple steps to purchasing your first rental property and becoming a landlord in 2022!
Look at your finances
Financing a single family rental property is different from applying for a mortgage on a primary residence. Down payments are generally higher (20%-25%), a credit score of 720 (minimum) is required for best loan terms, and your lender may require more borrower documents (than what is required for a mortgage on a primary residence) to ensure you are able to take on another home loan. Talk with your mortgage lender and be sure to go through all the financing details!
The more you learn, the more you earn!
Do you have friends who have successfully invested in real estate? Take them to coffee and prepare some questions! Listen to podcasts, read books, figure out how to calculate the ROI of a property. Learn as much as you can before you jump in!
Work with a Realtor
Working with a Realtor may be of benefit to you! A Realtor with investor experience understands the ins and outs of investing and will help you find a rental property for a great deal.
Find a rental property
When looking for a rental property to purchase, pay attention to:
- School districts
- Property taxes
- Crime rates and neighborhood safety
- Job and population growth
- Future development
- Average rents
- Number of listings and vacancies
Track your expenses
It's important to track your rental property expenses and income, as it can quickly become overwhelming. Use a spreadsheet or software to track all your expenses and income!
Looking to purchase your first rental property in 2022? Let's chat!!