| If you are currently in the market to buy a second | | | | interest, taxes and insurance) a month. You would |
| home or an investment property then | | | | want to be able to rent the home for $1200 a |
| congratulations, there is no better time than now. | | | | month. |
| The equity that you stand to gain from this purchase | | | | Also, ask yourself, "am I ready to be a landlord?" |
| can be considerable. You need to plan properly to | | | | This will involve the task of finding and maintaining |
| maximize your gains. The first step in this process is | | | | good tenants, answering phone calls about the toilet |
| to decide what the second home will be utilized for. | | | | not flushing and sometimes having to do what's right |
| Will it be a vacation home? Are you going to use it | | | | for you and your property, not what's right for the |
| as a rental home? If so, will it be a long-term rental | | | | renters. If you have the tendency to be "too nice," |
| or a short-term rental? You should have a strategy in | | | | land lording might not be for you. |
| mind when planning to move forward. It will help | | | | No matter what your property is intended for, be |
| make the process smoother. | | | | sure to cover all the bases. Be as diligent as you |
| If you are looking at the purchase as a source of | | | | were when buying your first home. Even more so, |
| revenue then there are certain steps that you should | | | | you will be able to apply any lessons you learned |
| take to ensure the home will bring in as much money | | | | during that process on the new home and you should |
| as possible. When analyzing what your mortgage | | | | be able to avoid any mistakes or area of stress that |
| payment will be you need to compare it to rental | | | | were present in the first purchase. Many people that |
| rates in the same area. A good rule of thumb is the | | | | buy a second home find themselves buying a third |
| property should be able to rent or cash flow for | | | | and a fourth. Once you start to climb the equity |
| $200.00 more than your total mortgage a month. For | | | | ladder its hard to stop! |
| example if your mortgage is $1000 PITI (principle, | | | | |