If you’re kicking around the idea of buying your first investment property, you know that you’ll likely need a little bit of help – and this guide is here to get you started.
Buying Your First Investment Property
Buying your first investment property is exciting, but you probably also know it’s a lot of work. Fortunately, there’s plenty of advice out there to help you get started – but it all really begins with finding the right REALTOR®. You need to work with a REALTOR who understands multifamily properties in Silicon Valley so you can get the best possible deal – and so that you’re not stuck with a house that isn’t going to meet your needs as an investor.
What Kinds of Investment Properties Make for a Good Start?
When you want to buy your first investment property, you can choose between a duplex, triplex or fourplex.
- A duplex is a two-unit home that can bring you two income streams.
- A triplex is a three-unit home that can bring you three income streams.
- A fourplex is a four-unit home that can bring you four income streams.
Living in Your Own Investment Property
Many people choose to buy an investment property and live in one unit while renting out the other(s). That’s because doing so takes the extra cost of living in a separate home right out of the equation; you may be able to charge enough in rent for one, two or three other units that your entire mortgage is covered.
Financing When You Buy Your First Investment Property
Financing on a duplex, triplex or fourplex is a lot like financing a single-family home – but the rental income you’ll receive from tenants can help you secure financing. Your REALTOR can help you find a lender that will meet your needs and answer your questions, too.
When is the Best Time for Buying Your First Investment Property?
The best time to buy your first investment property is as soon as you decide that it’s the right route for you. Many successful investors began their real estate investing careers by purchasing a duplex and living in one side.
As time passes, you can build equity in your first investment property and use the cash you save to purchase a bigger property with more potential. You can even “trade up” by using a 1031 exchange if you don’t want to keep your first investment property.
How Long Does it Take to Buy Your First Investment Property?
When you find a property you want, you can typically close in the same amount of time that you could with a single-family home. There are several factors to consider, though, including the property inspection and whether you’re asking the seller to make any repairs or concessions. Your own financing will make an impact, too. However, if all goes well, you should be able to close fairly quickly and start enjoying the benefits of buying your first investment property soon.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
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