San Diego, CA (PRWEB) November 08, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently published article on the website continues to help home loan borrowers explore all the potential benefits of property ownership by giving some very sound investment property advice.
The article states: “The goal of investing in rental property is to earn a profit from the rent you charge to tenants. However, depending on the characteristics of the property, the market conditions at the time and the specifics of your situation, investing in rental property may or may not be a lucrative choice. That being said, is rental property a good investment in TODAY’s market? Here are some factors to consider…”
The article goes on to explain that according to many housing experts, now is a great time to invest in rental property for those who have the cash on hand to do so. This is because housing prices have dropped recently, making home and apartment purchases much more affordable for those who want to make an investment. Mortgage rates are also at all time lows, which enables investors to possibly make a very good profit, even if it is necessary for them to finance their investment property purchase with a mortgage. In addition, the rental market is also good business for investors since rental rates are continuing to increase in nearly every major metropolitan area. This, combined with the reasonable housing prices and the low cost of borrowing, make it very easy for those who purchase rental units to potentially make very good earnings.
Loan Love does warn, however: “Even though the market is in a good place for investors, not every rental property offers the same earning potential. For example, properties located in low-income areas may not be able to bring in as much rent as a similar property located in an area with a higher average income. When deciding whether to invest in a rental property, consider these characteristics:
- Price - Is the property affordable? Will you buy it outright or finance it with a mortgage?
- Renovation required – Does the property need any work before it will be ready for tenants? How much will the work cost and how long will it take you to recover the cost in rent? How will you pay for the renovation?
- Maintenance - Will the property require a lot of maintenance? How much will the maintenance costs reduce your profits?
- Location - Is the property located in an area with a strong rental market? What is the average rent for a property of that size? How much profit can you earn?
- Vacancy issues – Are there a lot of rental vacancies in the area? Will you be able to afford to maintain the property if it remains vacant for an extended period of time?”
For more information on investment properties, please visit LoanLove.com for the full guide.