How to buy a Stockton rental property – A step by step guide
By RPM Central Valley
In 2017 owning rental property continues to be one of the best ways to build wealth, especially in Stockton where property values have appreciated in the last year.
Investing in rentals means that you will be generating consistent cash flow each month and best of all, your investment will appreciate each month as the Real Estate market grows.
If you’ve been thinking about buying a rental property this article will offer you tips you can use for getting started.
Step 1 – Define What Rental Property You’re Searching For
Are you interested in buying rental properties which you will use for long term rentals or short term rentals?
Some of the other important questions you should ask are:
- How much money can you put down?
- What is the monthly payment you can afford until you rent your property?
- What are properties renting for in your Stockton target area?
- How much income can you expect from your rental each month after expenses?
Get Pre-Approved For a Mortgage Loan
After you know the rental property you are searching for it’s important for you to get pre-approved for a mortgage loan so you can buy a Stockton Rental Property.
Before accepting just any mortgage loan you should get quotes from at least 5 lenders or mortgage brokers to insure that you are able to get the lowest mortgage interest rate possible since mortgage interest rates are now hovering near 3 percent or lower.
Start Shopping For a Rental Home
Once you’ve been pre-approved for a rental you should start shopping for a rental home in Stockton.
Tip – During the process of shopping for a rental you shouldn’t let “shiny objects” like a renovated kitchen or massive bathroom distract you from buying a great home which you should be able to rent right away.
Make an Offer on a Rental Home
Now that you’ve found a rental property the next step is to make an offer on the rental you want to purchase.
Before making an offer it’s best to hire a broker / Real Estate Agent for this purpose just so you can submit an intelligent offer instead of paying more for a home than what it’s worth.
Get a Home Inspection
One of the final steps to buying a Stockton Rental Property is to get a home inspection before agreeing to submit an offer on the home.
You will be able to find a home inspector online or your broker / agent will be able to recommend a home inspector for this purpose.
Save Time And Money With Property Management
Once you invest in your first rental property you can save time and money by hiring a professional property manager. Learn more about the services and solutions we can offer you by calling (209) 572-2222 or click here to connect with us online.
