Own to Rent

for rent

The average price of investment properties purchased to rent – instead of being used as a primary residence – went up a whopping 15.3% in 2015 according to the National Association of Realtors. Rent prices also escalated nearly 14% since 2014, creating an increased market in the landlord business. Before jumping into the investing business, there are a few things to keep in mind. First, don’t over borrow on a mortgage. Make sure that the monthly mortgage does not take up more than half the collected rent in order to stay in a positive monthly cash flow. Next, always factor in potential maintenance and repairs. Hire a contractor to estimate renovation costs that could affect long-term returns. Lastly, purchase an investment home close to your actual home. More than likely, you already know this market and area well and you can make easily make sure that your property is being taken care of. If you need help with your investments, contact our office at 816-524-4949 or check out our website at www.Hoorfarlaw.com.

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