Buying your first Investment property in Waldorf MD w Skip Young Realtor

?Buying your first Investment property in Waldorf MD w Skip Young Realtor

1. WHAT IT TAKES TO BE A LANDLORD? IN WALDORF MD

More than ever, people are attracted to investing in real estate. Owning an investment property can be a great financial asset and a practical method to receive passive income. For those considering investments in rental properties, knowing what to expect can set you on the right path. Far too many new investors make simple mistakes that cause major financial loss and legal burdens. In this guide, you’ll learn the basic requirements that must be met for you to successfully buy and manage your first investment property. Read on for: What it takes to be a landlord Qualifications for buying investment property Choosing an investment property Rewards, obligations, and risks?

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2. BUYING YOUR FIRST RENTAL PROPERTY IN WALDORF, MD

Buying rental property means you’ll be in charge of managing the property as well as the tenants. This means the job is on you to handle any repairs, conflicts, or legal matters that arise. Not everyone has what it takes to be a rental property owner. But if you do, here’s what it takes to be a good landlord. Managing your investment property requires:?

Correctly financing the new property.?

Marketing and selecting prospective tenants.?

Having an attorney to help with legal agreements. Collecting rent, deposits, and fees.?

Paying all expenses and balancing profits.?

Enforcing rules, rental contracts, and liabilities.?

Proper bookkeeping, accounting, and tax records.?

Maintaining repairs and hiring professional services (plumbing, pest control, etc.).?

Establishing an emergency action plan. Knowing how the eviction process works.?

Abiding by your local landlord and tenant laws.?

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3. Qualifications for buying investment property?

Like most property or home buying requirements, there are some standard qualifications you must meet in order to purchase an investment property.?

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Buying Vs Financing?

First, Decide If You’re Planning To Buy Or Finance. Many Real Estate Experts Suggest Only Investing In Rental Properties If You Can Purchase The Property Outright. However, Plenty Of Prosperous Investors Decide To Finance Instead, Or “Leverage” By Taking Out A Mortgage.?

Pre-approval?

If You Decide To Go The Financing Route, First Get Preapproved For A Mortgage. This Way, You Know What Your Budget Will Be And Can Begin Looking For Realistic Options.?

Fixed-Rate Loan?

• A more predictable long-term loan.?
• Interest rates don’t change over time.?
• They remain fixed. Credit score requirement starts at 620.?
• Minimum down payment of 15%, or 20% for 720+ credit score.?

Adjustable-Rate Mortgage (ARM)?

• Typically, a 30-year loan.?
• Fixed, low introductory interest (typically the first 5-10 years).?
• Interest rates change after the fixed period ends.?
• Credit score requirement begins at 620.?
• Minimum down payment of 15%.?

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4. Choosing an investment property in Waldorf MD?

You’re ready to purchase. But where and when should you buy? Here are the main things to look for in a profitable investment space.?

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Long-term Roi Your Return on Investment (ROI) is the top priority in your investment decision. Keep this in mind when choosing which property to invest in. Avoid jumping into the first vacant spot you can afford.

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Consider your ideal renters?

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Do you want recurring, short-term tenants in a tourist vacation spot? Would you rather market to young, successful entrepreneurs in metropolitan areas? Would it be more profitable to invest in property within retirement communities? Consider your ideal renter demographic.

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Location?

“Location, location, location” is a common phrase in the real estate investment market. Since a property investment doesn’t need to coincide with your primary residence, you can choose from a larger variety of locations.

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Prices and expenses?

Crunching the numbers beforehand will prepare you for making the best decision on which property to buy, and where. Knowing about the local property tax, job market, amenities, and average rent will help you determine your prices and line them up with your expenses.?

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Condition and upkeep?

Is the property a fixer-upper that will require large repairs upfront? Weigh your options and conduct proper inspections for your serious prospects before signing the dotted line.?

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5. Rewards, obligations, and risks?

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Like most property or home buying requirements, there are some standard qualifications you must meet in order to purchase an investment property.?

Some rewards include:?

• Passive income. You earn money from renters while still generating your regular income.?
• Tax-deductible interest payments for rental property.?
• Investments in real estate tend to be far less volatile than the stock market.?
• You make real-life decisions that affect the potential of a tangible asset.?
• Options to put earnings into a self-directed IRA.?
• You can physically and financially contribute to improving your local community.?

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Be aware of obligations and risks, such as:?

• Initial purchase costs can be high. The property— and any upkeep required— is your responsibility.?
• You’re committed to the property long-term. You can’t just sell it if things get complicated.?
• Tenants can be difficult to deal with. If someone isn’t paying their rent, it’s still your job to cover all property expenses.?
• You might be subject to taxes on net rental income, depending on your salary or location. Many investors go into real estate with unrealistic expectations, which causes many to quit early and fail.?

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If you’re in the market for buying your first investment property, getting help from a professional such as myself, Skip Young, your local Realtor, or a mortgage broker can make the process less confusing. Trying to go at it alone is one mistake many new investors make that leads to failure. Contact me today to learn more about successful property investment.?

eXp Realty, EXP Realty,?

Realtor Phone: 301-337-1999?

[email protected]?

License: 669225, Maryland?

skipyoung.com?

What's my House Value in Waldorf Maryland? If you are looking to Buy a Home in Southern Maryland, hire a Southern Maryland Realtor to help you find the Home you are looking for. In either Charles County, St. Mary’s County, Prince George's County, Calvert County or Anne Arundel County, Finding and Hiring a Local Realtor will help you find the right home for the right price. If it's New Construction you need, your local Maryland Realtor can help you find the right Community or even find the right On Your Lot with Caruso Homes to build your Luxury Dream Home. What is your house value? Home value comes from the sales of other properties in your community that have sold over the last 6 months. When your house is prepared to go on the market, the value is calculated by Bedrooms, Bathrooms, Square Footage, Garage, and Basement. The location also plays a part in the value of your home. If you in a good location, close to shopping, in a great school district, this will attract more potential buyers to your home. Making the home value much higher and also opening up the possibility of selling your home much faster. Taking into the factor that when buying a New Luxury home from Caruso Home - On Your Lot, you have the opportunity to get your new home built for less than regular market value. Always give New Construction of your purchase a chance to see if you have the 7 - 9 months of build time. Caruso Homes also has communities all around Maryland that have homes that are 30 - 45 days out for you to purchase as well. Buying new will give you the value and equity to grow in your investment.

Need to know the value of your Waldorf MD?Please leave a message below and I will return the valuation of your home, time to sell on the market, and any other information on your neighborhood statistics.

Author: Skip Young

Skip Young Realtor

is rated 5 stars on Google based on 3 reviews

Zillow Reviews

04/10/2018 - williamrichmondinc

Sold a Single Family home in 2010 in Mechanicsville, MD.

• Local knowledge:
• Process expertise:
• Responsiveness:
• Negotiation skills:

I tried unsuccessfully for four years to sell my home in Mechanicsville. Two different real estate companies declined to renew my listing. Thank goodness for Skip Young. He never gave up and never made any excuses - and this was at a time when the real estate market was at it’s absolute worst. We had some offers that fell through at the last minute. Skip never wavered. His attitude was always positive. Thanks to Skip’s tenacity and professionalism my house sold and I got the fresh start I needed. Thank you Skip.

2004 Rookie of the Year Southern Maryland? Calvert County

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Buying or Selling Real Estate in Maryland, Servicing these area's.

Bowie, Waldorf, Coltons Point, Bryantown, Barstow, Solomons, Mechanicsville, Fort Washington, Brandywine, Oxon Hill, Annapolis, Aquasco, Dameron, Welcome, Cobb