Is it a good idea to buy a rental property?

A rental property can provide a significant monthly income stream and potential asset appreciation.  Investment or rental properties are not without significant risk; rental properties have to be maintained, tenants have to be found, vacancies will most likely arise and time to manage these events must be allocated.  Many first time rental property buyers fail to consider all of the costs involved in ownership and maintenance of these investments.  A potential buyer should make sure to use the mortgage payment calculator with the interest rates and down payment that applies when securing a mortgage for a rental property.  Rental properties or investment properties are considered non-owner occupied properties and have a higher interest rate and require larger down payments than an owner occupied single family home.  Buying a rental property should be evaluated as if the buyer was operating a business, weigh all of the costs, potential returns and risks.

This entry was posted on Wednesday, December 10th, 2008 at 10:31 pm and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.