Tips for Buying That First-ever Income Property

First-time investors with limited income or reservations about real estate investment often start with an income property that can serve as both their residence and a source of income. This is an asset for first-time buyers with limited income as well as an opportunity for new investors to jump into the real estate market.

Following are a few tips that first-time investors need to be aware of when buying a home with

rental income.

Research the Neighborhood: Areas where there is substantial investment being made usually indicates that a neighborhood is on the upswing. The potential for appreciation over time is as much a benefit to the investor as the ability to gain rental income.

Know What You’re Buying: The condition of the property is an important consideration when buying a duplex. A home inspection report will give you a detailed accounting of the condition of the property.

Identify Whether the Property is a Conforming Legal Use: The rules regarding homes containing in-law suites, granny flats or duplex conversions vary from town to town. Buyers intending to rent all or part of a property will want to ensure that the work was done properly and that they can legally rent the premises.

New investors looking to jump into the market can capitalize on low interest rates and stable real estate markets. Even with a limited budget, they can realize significant returns on their investment by looking for profits in smaller-income properties. The knowledge and experience investors gain will allow them to grow their real estate investment portfolio over time.

Randy Bett www.BetterGroupRealEstate.ca