Buy Your First Investment Property2018-01-05T10:23:56+00:00

Investment Property

Buying your first investment property is a big deal. It is a huge asset for most individuals, and it requires work. Many individuals actually view owning a rental property as being more similar to a small business than an investment, because it involves customers (tenants) and vendors.

Investment Property

Buying your first investment property is a big deal. It is a huge asset for most individuals, and it requires work. Many individuals actually view owning a rental property as being more similar to a small business than an investment, because it involves customers (tenants) and vendors.

Investment Property

Buying your first investment property is a big deal. It is a huge asset for most individuals, and it requires work. Many individuals actually view owning a rental property as being more similar to a small business than an investment, because it involves customers (tenants) and vendors.

Buying Investment Property

We work with real estate investors to purchase real estate to generate cash flow, equity and diversify investment portfolios. Whether you’re a seasoned real estate investor or want to buy your first investment property you need local knowledge and extensive experience to secure the right properties that will cash flow. We employ strategies to buy right based on location and growth and to  find distressed and early stage foreclosure properties. We look at potential cash flow and expenses of the property including taxes and maintenance as well as compare rents of similar units in the area and review tenant occupancy to understand if the property is available with ongoing leases in place. We understand that owning rental property is part of an investor’s business plan and treat it as such.

If you’re ready to invest or re-invest here are some things to consider:

Payment Strategy: Mortgage, Cash, Retirement fund, 1031 Exchange, Inheritance, Stock Options

Different purchase methods have different requirements.  For example, a 1031 exchange requires specific time frames be met for identification and exchange of property. When using retirement funds often the money used for payment needs to be sent directly from the fund to escrow to avoid potential tax penalties.  If a mortgage will be applied for, it must be a mortgage that allows the owner to lease the property after purchase.  These are just a few examples of many requirements when purchasing investment property.  It’s critical that you work with agents that understand the ins and outs of investment property as maximizing your investment dollars often depends on it.

Considering The Extra Expenses

Every property has items that the owner is ultimately responsible for. Below are some to think about when purchasing an investment property:

  • Property Taxes
  • Maintenance
  • Repairs
  • Service Calls
  • Wear and Tear
  • Landscaping
  • Property Management
  • Insurance
  • Damage to the property
  • Utilities
  • Appliances
  • Tenant Non-Payment
  • Potential legal fees
  • Depreciation
  • Hold time
  • Cost basis
  • Tax Preparation

Calculating Your Return On Investment

Once total expenditure is derived the true test is return on investment.  Use the below calculation to estimate your ROI.

First, take your total equity, and divide it by your annual return.  You can calculate your annual return by doing the following:

Gross Income – Expenses (including mortgage payment) = Cash Flow
Cash Flow – Income Taxes + Principal Payment = Return

To calculate your return on investment = current equity / total return.

It is important to calculate this return annually, especially relative to other investments so you can compare your rental property’s performance.  This is an essential calculation before buying any type of investment property.

Buy your first investment property
  • Investment Description

  • Please let me know of any special wants/needs.
  • Contact Person

    Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. This information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify properties consumers may be interested in purchasing or selling.

Buying Investment Property

We work with real estate investors to purchase real estate to generate cash flow, equity and diversify investment portfolios. Whether you’re a seasoned real estate investor or want to buy your first investment property you need local knowledge and extensive experience to secure the right properties that will cash flow. We employ strategies to buy right based on location and growth and to  find distressed and early stage foreclosure properties. We look at potential cash flow and expenses of the property including taxes and maintenance as well as compare rents of similar units in the area and review tenant occupancy to understand if the property is available with ongoing leases in place. We understand that owning rental property is part of an investor’s business plan and treat it as such.

If you’re ready to invest or re-invest here are some things to consider:

Payment Strategy: Mortgage, Cash, Retirement fund, 1031 Exchange, Inheritance, Stock Options

Different purchase methods have different requirements.  For example, a 1031 exchange requires specific time frames be met for identification and exchange of property. When using retirement funds often the money used for payment needs to be sent directly from the fund to escrow to avoid potential tax penalties.  If a mortgage will be applied for, it must be a mortgage that allows the owner to lease the property after purchase.  These are just a few examples of many requirements when purchasing investment property.  It’s critical that you work with agents that understand the ins and outs of investment property as maximizing your investment dollars often depends on it.

Considering The Extra Expenses

Every property has items that the owner is ultimately responsible for. Below are some to think about when purchasing an investment property:

  • Property Taxes
  • Maintenance
  • Repairs
  • Service Calls
  • Wear and Tear
  • Landscaping
  • Property Management
  • Insurance
  • Damage to the property
  • Utilities
  • Appliances
  • Tenant Non-Payment
  • Potential legal fees
  • Depreciation
  • Hold time
  • Cost basis
  • Tax Preparation

Calculating Your Return On Investment

Once total expenditure is derived the true test is return on investment.  Use the below calculation to estimate your ROI.

First, take your total equity, and divide it by your annual return.  You can calculate your annual return by doing the following:

Gross Income – Expenses (including mortgage payment) = Cash Flow
Cash Flow – Income Taxes + Principal Payment = Return

To calculate your return on investment = current equity / total return.

It is important to calculate this return annually, especially relative to other investments so you can compare your rental property’s performance.  This is an essential calculation before buying any type of investment property.

Buy your first investment property
  • Investment Description

  • Please let me know of any special wants/needs.
  • Contact Person

    Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. This information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify properties consumers may be interested in purchasing or selling.

Buying Investment Property

We work with real estate investors to purchase real estate to generate cash flow, equity and diversify investment portfolios. Whether you’re a seasoned real estate investor or want to buy your first investment property you need local knowledge and extensive experience to secure the right properties that will cash flow. We employ strategies to buy right based on location and growth and to  find distressed and early stage foreclosure properties. We look at potential cash flow and expenses of the property including taxes and maintenance as well as compare rents of similar units in the area and review tenant occupancy to understand if the property is available with ongoing leases in place. We understand that owning rental property is part of an investor’s business plan and treat it as such.

If you’re ready to invest or re-invest here are some things to consider:

Payment Strategy: Mortgage, Cash, Retirement fund, 1031 Exchange, Inheritance, Stock Options

Different purchase methods have different requirements.  For example, a 1031 exchange requires specific time frames be met for identification and exchange of property. When using retirement funds often the money used for payment needs to be sent directly from the fund to escrow to avoid potential tax penalties.  If a mortgage will be applied for, it must be a mortgage that allows the owner to lease the property after purchase.  These are just a few examples of many requirements when purchasing investment property.  It’s critical that you work with agents that understand the ins and outs of investment property as maximizing your investment dollars often depends on it.

Considering The Extra Expenses

Every property has items that the owner is ultimately responsible for. Below are some to think about when purchasing an investment property:

  • Property Taxes
  • Maintenance
  • Repairs
  • Service Calls
  • Wear and Tear
  • Landscaping
  • Property Management
  • Insurance
  • Damage to the property
  • Utilities
  • Appliances
  • Tenant Non-Payment
  • Potential legal fees
  • Depreciation
  • Hold time
  • Cost basis
  • Tax Preparation

Calculating Your Return On Investment

Once total expenditure is derived the true test is return on investment.  Use the below calculation to estimate your ROI.

First, take your total equity, and divide it by your annual return.  You can calculate your annual return by doing the following:

Gross Income – Expenses (including mortgage payment) = Cash Flow
Cash Flow – Income Taxes + Principal Payment = Return

To calculate your return on investment = current equity / total return.

It is important to calculate this return annually, especially relative to other investments so you can compare your rental property’s performance.  This is an essential calculation before buying any type of investment property.

Buy your first investment property
  • Investment Description

  • Please let me know of any special wants/needs.
  • Contact Person

    Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. This information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify properties consumers may be interested in purchasing or selling.
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Let's Talk Real Estate
Shirley Hicks
Michelle Hicks

Let's Talk Real Estate

With Local Boise Real Estate Experts Shirley & Michelle Hicks
208.371.6800
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