Anyone interested in making additional income or looking to be self-employed should consider buying investment properties in real estate for rental income or for house flipping for profit.
There are many ways one can go about purchasing real estate investment properties. But here are 5 basic things you should know about real estate investing before you start your journey.
First, you must know what your credit rating is. Your credit rating is the most important factor in determining the interest rate of your investment property and what your monthly mortgage payment will be on that investment.
Second, you must know what your debt to income ratio is so you can figure out how much of a mortgage you can afford.
Third, are you interested in buying investment properties for a steady monthly rental income or a one lump sum of profit from house flipping?
Fourth, you need to determine how much you able to afford a down payment for your new home and whether or not you can use the equity in your current home or investment in properties (if any) toward the down payment of the real estate property.
Fifth, you need to determine the location of where you want to purchase the investment in real estate. This is important because location will determine the profit from rental income.
Finally, you must know if you are willing to fix up the house yourself, hire a contractor, or not at all.