This is the second article in a three part blog series on buying investment properties in Northern Virginia. You can read Part 1 here.
Buying Investment Properties - Other important things to consider:
- Interest rates are always a little higher when buying investment properties, compared with the rates for buying owner occupied properties. So you when you start doing adding everything up on mortgage calculators, be sure to take this into account.
- Have you set aside money for ongoing property maintenance? Examples are appliances breaking down, roof repairs, etc.
- Have you factored realistic numbers for when your property might be vacant in the future between tenants? This translates to money out of your pocket, since you’ll still be making the mortgage payments even though you won’t have any cash flow during those times.
- Have you considered worst case scenarios like your tenant losing their job and not being able to pay rent, and perhaps having to evict them? Eviction proceedings are not instantaneous, and during this time, you’ll lose money.
Read Part 3 in my blog series on buying investment properties in NoVa. We’ll discuss repair deductibles for your tenants, as well as home warranties.
Email me at DarrenRobertsonHomes@gmail.com for a free list of the top 5 fixer-upper deals in the Northern Virginia neighborhood of your choice!