If you already own a home, purchasing a rental property area may be easier than you think, depending on the equity you’ve accumulated over the years.
However, if you’re new to the real estate world, purchasing a home with a separate rental unit is a great way to get your foot in the door, pardon the pun 🙂
It’s much easier to afford a property if you have someone else paying the mortgage and the best part is, you don’t have to put up with an annoying roommate who leaves the kitchen in a mess as you’ll have your own separate unit.
Maintaining a rental property is also much easier if you live on-site as you’ll be able to cut the grass and keep an eye on things.
Finally, owning a rental property means you can deduct a portion of your mortgage, property taxes, insurance, utilities and maintenance costs when tax time rolls around.
It’s important to treat your rental property like a business though to ensure its success. For instance, having an emergency fund is essential as you’ll be responsible for issues that require immediate attention such as a broken furnace or a burst pipe.
Being a landlord isn’t for everyone, especially if you’re not living at the property, but it shouldn’t stop you from pursuing your real estate investment dreams as you can always hire a property manager to take care of things for you.
As with any property purchase, it’s important to seek professional advice to help ensure you buy the right property, in the right location, for the right price.
If you’re a business-oriented person who’s able to think long-term and plan for the unexpected, managing your own rental property might be the perfect fit!