Investing Tips

Many people are intimidated by the investment market because they don't realize that it doesn't take huge sums of money to get started. If you already have a home, the equity in your home can certainly become a good source of funds to get you started. And it is not necessary, nor is it recommended to take all of the equity out of your principal residence. 

Funds to cover the down payment and closing costs are sufficient. A competent loan officer accustomed to working with investors can qualify you and help you with the refinancing of your current home, and perhaps even reduce your current mortgage payment in the process.

Talk to realtors, loan officers, and experienced investors to get some suggestions as to with whom you might consider working. Then comes the matter of renovations to the investment property. If you look for properties that are in fair condition, you can minimize the need for repairs and renovations.

Having a qualified home inspector check the systems of the chosen home is crucial. The roof, windows, furnace, etc. are areas that need inspection by a licensed contractor or home inspector. Replacing these systems can be costly.  Next week we will talk about whether to upgrade or replace the systems in your investment property.