We have seen mortgage rates rise sharply as Bankrateâ€™s benchmark 30-year mortgage rate is currently at 4.78%. This is the highest level since July 2011. In March 2018, rates averaged just 4%
5 Tips For Buying Your First Investment Property In Whitestone Queens
5 Tips for Buying Your First Investment Property in Whitestone, Queens
Be A Strong Borrower - Pay off student loans, credit card debt, unpaid medical bills, etc before purchasing your first investment. Have at least a 20% - 25% down payment. Know that 25% would get you a better rate. Check your credit report because if your score is below 740 it would cost you a quarter of point to 2 points to get the same rate as someone over 740.
Get Pre-approved - Before you start house hunting speak to a mortgage broker or lender and get pre-approved. Know your spending limits and comfort level.
Location, Location, Location! - Look for low property taxes, a good school district, a safe neighborhood and convenient public transportation to Manhattan. Ask yourself if this area will provide enough rental income to cover your mortgage, taxes and other expenses.
Determine your Investment Goals - Do you want your investment property to produce positive cash flow or just want to break even with hopes of appreciation over time as you pay down your mortgage during the life of the loan?
Assemble Your Professional Team
- a Realtor who will work for your best interests to get you the best price
- a mortgage professional with experience in investment properties
- an attorney who understands asset protection to help you form the right structure for holding your investment property and one who will include the right contingencies in your contract
- an accountant who understand investment property tax strategies