Tag: investment properties

Benefits of Buying An Investment Property Before Your First Home

Posted on by author

Purchasing your first home is an exhilarating moment and a huge life milestone, but with all the excitement comes the financial side. Homes are expensive and require monthly mortgage payments, property taxes, unexpected repairs, home updates, and more. 

Many people consider purchasing an investment property before buying their first home to help with their financial commitment. Let’s dive into a few benefits below.

Cash Flow

The biggest benefit to buying an investment property before your first home is the monthly cash flow they provide. Purchasing an investment property and finding tenants to rent it out can provide a steady stream of income that can help you save up for future investments, like your first home. 

Build Equity

Another huge benefit is building equity. Investment properties allow you to get your foot in the door and build equity until you can afford to purchase a home in the neighborhood you want. As a property owner, you can eventually leverage enough cash for the home you want and have more opportunities for mortgage loans. 

Tax Benefits

Owning a rental property also comes with many tax benefits. One of the biggest tax deductibles for property owners is interest, including on your mortgage loan or if you use a credit card. 

Other tax benefits include:

  • Operating expenses
  • Cost of repair
  • Use of personal property
  • Travel expenses
  • Legal services

Increase Your Wealth

While real estate investments can require a lot of dedication and patience to be successful, they can increase your overall wealth. Real estate investments appreciate over time, which is excellent for your future wealth when you sell the home.

If you have any questions about purchasing an investment property before your first home, reach out to us! We are always here to help.

Benefits Of Using A Property Management Company

Posted on by author

While owning an investment property can be a great source of income, it can come with some stressors. If you decide to handle all of the landlord responsibilities on your own, that means dealing with tenant screening, rent collection, marketing, requests, and more, which takes away time from finding your next investment or working with other clients.

Property management companies provide many benefits that will help save you time and stress. Let’s dive into why hiring a property management company is the right thing to do.

Tenants

Tenant screening can be very time-consuming and complex, which is one of the biggest reasons investors hire property management companies. Property managers do screening all the time, so they know exactly what to look for when scoping out high-quality tenants. They look for long-term tenants who will pay their rent on time and cause limited issues. If any problems arise, property managers will be the point of contact for tenants and address issues accordingly. 

Rent Collection

One of the most uncomfortable landlord responsibilities is chasing after rent if it isn’t paid on time. Property managers handle that for you by collecting rent, enforcing lease policies, and handling evictions if necessary. If tenants are consistently not paying their rent promptly or are failing to pay it at all, property managers will know how to handle it appropriately. 

Marketing

Property management companies handle all the marketing to get your property in front of the most people. They will take high-quality photos of the property, write up rental ads, and list your property on the most prominent websites where tenants are looking. Some property management companies, including Talk Property Management, will run a comparative market analysis on the property and recommend a starting rent amount based on current market trends to make sure you’re in line with the competition.

Shorter Vacancy

Property managers know how to keep tenants happy, leading to more long-term tenants and shorter vacancy periods. If property managers take care of issues and repairs in a timely manner and are quick to respond, tenants are more willing to stay in their lease when reasonable rent increases arise. Ultimately, tenants don’t want to deal with the stress of moving, so if they are well taken care of, and their needs are met, they’re more than likely to stay.

Property management companies can be a big help if you’re starting out or handling multiple investment properties at once. If you have any questions or need recommendations, reach out to us or read more about our property management services! We are always here to help.