When you think about buying your first home, you likely picture moving in and living in the house for at least a few years. But did you know that you can also buy your first house and immediately use it as a rental property? Doing so is a great way to earn a little extra money each month without forcing you to take on a second (or third) job. That said, you need to do it the right way. Here are a few proven tips to help you succeed.
Use the Right Loan
If you’re planning on financing the purchase of your first house with a VA loan or other government-backed loan, you’ll need to make sure you’re able to use the property as a rental in the first place. Many of these loans require you to use the house as your primary residence for a set period of time as a condition of getting the loan in the first place. That said, if you’re using a conventional mortgage, you’ll be good to go as long as you qualify for the loan.
Don’t Be Afraid of a Little Work
When you’re shopping for your rental property, take the time to see past the décor and outdated fixtures in place. If you’re willing to put in a little work, you’ll be able to save money when buying your first home. The more you save, the more you can invest into the property to make it stand out from other rentals on the market. This can make a huge difference when you’re trying to attract long-term tenants that are willing to pay higher rental rates.
Choose the Right Part of Town
When you’re buying your first home as a rental property, you need to think about the long game. This means choosing a part of town that’s likely to increase in value and demand. Pay attention to the types of homes around the ones you’re considering. If the property is located in a family-friendly area and property values have gone up consistently over the years, you should be in good shape.
Work with the Right Lender
Buying your first home is confusing whether you’re planning on living in the house or want to use it as a rental property. Make things easier on yourself by working with the right lender from the very beginning. Contact our team to discuss your goals and let us help you find the right loan quickly.