The number of people renting homes and apartments in the United States has grown over the past few years. The rise in renters around the country has led to many individuals venturing into the world of real estate investing. With the right real estate investment, a person can create a reliable form of passive income.
Over 71 percent of the rental properties in the United States are owned by individuals. If you want to add a rental property to your investment portfolio, then finding the right home in the Santa Clarita area to purchase is imperative. Before you buy a rental property in Santa Clarita, you need to consider some of the following things.
1. Enlisting the Help of Professionals
There are so many properties for sale in and around the Santa Clarita area. Instead of trying to narrow down the extensive list of properties for sale alone, you need to realize the importance of working with a real estate agent. Ideally, you want to choose an agent that is familiar with Santa Clarita and the neighborhoods contained within this area.
The Marcel Cuschieri Group is comprised of experienced real estate agents who are passionate about helping their clients. We have a vast number of listings and will narrow down these listings based on your needs. With our help, you can find a great rental property that is reasonably priced.
2. Lock In Financing Before Searching For a Rental Property
Very rarely does an investor have cash in hand to buy a rental property. Generally, an investor will have to take out a loan from a bank to fund their purchase. Before you begin the search for a rental property to purchase, you need to get pre-approved for a loan.
When preparing for the loan application process, you will need to review your credit score. The better your credit score is, the easier it will be to get approved for a low-interest loan. You also need to make sure your debt-to-income ratio is low. If this important metric is high, then you need to pay off a few loans and credit card balances before applying for a loan.
3. Pay Attention During the Home Inspection
If you’re getting a loan to buy a rental property, then the bank will require a professional inspection of the property in question. During this inspection, you must pay close attention to the problems. If a home inspector finds several problems with the potential property purchase, you need to think twice about buying it.
The last thing you want is to inherit a money pit, which is why reviewing the home inspection report is crucial. If the inspector finds minor cosmetic issues, you might be able to negotiate a better price with the seller. These smaller issues will be much easier to fix and shouldn’t be viewed as a dealbreaker.
Are you ready to find a great property to invest in? If so, the Marcel Cuschieri Group is here to help.