Investment Properties - Special Use


Rentals are a great way to get someone else to pay your mortgage payment.

If you're looking for "positive cash flow" meaning you have money left over from the rent received after paying all expenses, you'll probably either need to buy a severely distressed property and put some elbow grease into it or put down a significant down payment (greater than 20%).
What are some good rentals?

Do you live near a college campus or even better yet, have kids approaching college age? If you can buy a home near the college your kids will be attending, you'll have built-in landlords for at least a few years. This is a GREAT plan plus it will save you money on rental costs for your kids!
How about a vacation area near you? Homes in your neighborhood?

It is nice to have a vacation home that you can use a few weeks out of the year and rent the rest of the time but be sure you talk with your accountant to stay within the tax laws. If you can buy and rent homes nearby, it will help with those late night maintenance calls and also make it easier to drive past to ensure the home is being kept up.

Whatever the case, check on financing costs for "non-owner occupied" home loans as part of your preliminary planning and ensure you can survive a few months of vacancy as you wait for the right renters.

Investment property is a bright path to financial independence!