Quiz: Are you ready to buy your first rental property

QUIZ

Are You Ready to Buy Your First Rental Property

Jackie Woodward // Mortgage Broker, TMG 780.433.8412 // [email protected]

Buying your first rental property is a big commitment and investment. I’m sure you’re already doing the necessary research

in preparation as there are numerous articles outlining all important details involved in purchasing a rental property. This quick quiz is meant to act as a preliminary checklist before you

take the next step in the buying process and is not meant to replace advice from a professional about your specific scenario.

ALL YOU NEED TO DO IS WRITE DOWN HOW MANY A'S & B'S YOU

CHOOSE AND THEN FIND OUT HOW RENTAL READY YOU ARE!


1. Do you already own a personal residence?


A. YES B. NO

2. Have you decided WHY you want to buy a rental property? Will it be a long-term

investment, a short term renovation and flip, a future property for a child, etc?


A. YES B. NO

3. Have you talked with investors who already own one or more rental properties?


A. YES B. NO

4. Have you talked to your mortgage professional about potential financing options and what kinds of

mortgage rates and payments you could likely see when you it comes to financing your rental property

purchase?


A. YES B. NO

5. Have you thought about what kind of tenant you want to occupy the property and how

you are going to find and qualify them? i.e. young professionals, students, the elderly,

families with pets etc.


A. YES B. NO

6. Have you decided what kind of property you want to own? i.e. apartment

unit, townhome, duplex, house etc.


A. YES B. NO

7. Have you decided if you are going to self-manage the property or hire a

property management company at a cost?


A. YES B. NO

8. Have you completed a cash-flow analysis spreadsheet to determine how much rent you have to charge in order to

earn revenue from your rental?


A. YES B. NO

9. Have you decided if you’re buying a rental property on your own or under a

joint venture with another person or group of people?


A. YES B. NO

10. Do you have liquid assets available that you have allocated to costs relating to your new rental property? i.e. if something breaks down

do you have the cash to fix it right away.


A. YES B. NO

MOSTLY A’S: RENTAL READY Looks like you’re ready to take the next step in buying your first rental property. You’ve decided why you want to own a rental

property, you know what kind of property you’re looking for and the kind of tenants you want to occupy it. Awesome! Since

financing is now more difficult to obtain when it comes to rental properties you’re prepared for the potentially higher rates and

larger downpayment requirements you may run into when getting a mortgage. Good thing you have your cash-flow analysis handy

and you can play with the numbers a bit before finding your perfect revenue property strategy.

FOR MORE INFORMATION ABOUT RENTALS, CHECK OUT OUR BLOG OR

CONTACT US AT THE INFO BELOW.


MOSTLY B’S: RESEARCH READY Do be aware the mortgage qualifying process for buying a rental property is a bit different than when you are buying a home to owner occupy. It is not only harder to qualify for a rental property mortgage, but you now have to change your mindset to a landlord’s perspective as it’s no longer about you living in

that home. Your goal is to attract a tenant to live in the property who is willing to pay a rental amount sufficient to generate a positive cash-flow at the end of each month. Research and preparedness is what could mean the difference between a successful rental property or a property headache and

before you start the purchasing process do talk to some people who are both knowledgeable and trustworthy.

FOR MORE INFORMATION ABOUT RENTALS, CHECK OUT OUR BLOG OR

CONTACT US AT THE INFO BELOW.


A’S & B’S: IN-BETWEEN INVESTOR You’re on your way to “eventually” purchasing your first rental but just not quite ready to begin. There may still be a couple of things

that you’re undecided on; maybe you’re still experimenting with the numbers to see what suits you best or talking to some other

investors about some helpful tips & tricks or trying to find the perfect joint venture partner. That’s okay as long as you’re not on a deadline. If you’re feeling pressured because the perfect property has come up but you don’t yet feel you are fully educated, perhaps

it’s not the perfect property.

FOR MORE INFORMATION ABOUT RENTALS, CHECK OUT OUR BLOG OR CONTACT US AT THE INFO BELOW.


QUESTIONS?

LET’S CHAT!

JACKIE WOODWARD Mortgage Broker, TMG Edmonton, Alberta CALL: 780.433.8412 EMAIL: [email protected] VISIT: www.mortgagegirl.ca TWITTER

FACEBOOK

Real Estate

Quiz: Are you ready to buy your first rental property