Buying investment properties can be a great way to build wealth and increase your financial security. However, buying a property is a big decision, and it’s important that you understand all the ins and outs of the process before making any decisions. This guide will outline some basics you need to know before taking this leap. Then, let Basic Construction help fix it up for you so it’s ready for use!
Research Your Market
It’s important to do your research when it comes to selecting an investment property. Start by looking into the markets to see which areas are seeing the most growth in terms of population, rental prices, job opportunities, and more. You should also look into the recent history of the area — Has it been known for stability, or has there been a lot of volatility? Understanding these factors can help you make sure that you’re investing in an area where you can expect strong returns on your investment.
Understand Your Financing Options
When it comes time to purchase an investment property, you’ll need to understand your financing options. Traditional lenders often have strict guidelines when it comes to approving loans for investment properties, so you may have better luck with alternative lenders who specialize in this type of loan. It’s important to understand all the terms and conditions associated with any loan before signing on the dotted line.
Know What You Can Deduct
When it comes time to file taxes for your investment property, there are certain expenses that you can deduct from your income tax bill. These include mortgage interest payments, insurance premiums, repairs and maintenance costs, property taxes, legal fees, management fees, and more. Knowing what expenses are deductible can help make owning an investment property more budget-friendly in the long run.
Let’s Make the Most of Your Rentals
If you’re considering buying an investment property, make sure that you do your research first. Then, turn to a reliable turnkey general contractor that can help turn the investment into a great property. For those living in Fishers, Brownsburg, Greenwood, and Indianapolis, IN, Basic Construction is the go-to. We proudly serve landlords and property owners, offering solutions for plumbing, roofing, electrical, and more. So, call us today at (317) 505-1030 or submit a work request online.