Residential Income

What are your goals?  Immediate Income?  Long Term Appreciation?  Tax Write off?  How much can you afford to put down?  Who is going to manage the property?

 All of these are important questions that you must answer before you start looking for a property.  It is important to remember that insurance and mortgage rates are generally different for non-owner occupied properties.  You should talk to your insurance agent and mortgage broker before searching for property.  It is usually wise to  talk to your tax advisor also before purchasing investment real estate so that you can make accurate projections for income after taxes.

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Goal: Income

Requirements: Rent must cover mortgage, insurance and maintenance and still have $ leftover each month.   A large down payment

Goal: Appreciation

Requirements: Rent must cover mortgage, insurance and maintenance each month.  A large down payment.

Goal: Tax Write-off

Requirements: Depends on your financial strength as to whether you need rents to cover mortgage, insurance and maintenance or not.  However, not making these a minimum requirement can cause severe cash flow issues.