The Lowdown on Being a Landlord
Having someone else pay your mortgage while your property appreciates is a very financially rewarding experience! There are also various tax advantages as you can write off mortgage interest, real estate taxes, insurance, utilities and maintenance.
Being a landlord isn't always easy though. Even the most reliable tenants can be late with their rent which will turn you from investor to collection agent. Dealing with disagreeable tenants can be hard work so make sure it’s the right fit for your personality. If not, you may want to hire a property manager.
Cash flow's an important consideration as you’ll be responsible for overseeing the ongoing maintenance of your building. An emergency fund is essential for taking care of immediate problems such as a broken furnace or leaky roof. It's also common to be in between tenants from time to time so you'll have to budget for lost rent.
Purchasing a rental property to live in is a great way to get your foot in the door, so to speak. It's much easier to afford a property if you have someone paying rent and the best part is that you don't even have to put up with a roommate! It's also easier to maintain the property if you're on site to cut the grass and do other general types of repairs.
As with any property purchase, it's important to seek professional advice from your real estate agent to ensure you buy the right building in the right location so that it'll be a profitable investment you won't regret. If you'd love to operate your own business and are able to plan for the unexpected, being a landlord might be right for you!
Any questions on buying and owning investment property both residential and commercial please give us a call at 604-466-4549 or email at firstname.lastname@example.org .