Get started in real estate investing
There are all kinds of reasons to buy an investment property – perhaps you want to make a living as a full-time landlord, maybe you want to buy a second property to supplement your income, or you simply want to add an income suite to your own home to cover your mortgage payments.
Whatever your reasons for wanting to get started in real estate investing, you’ll find that things are a little different to buying a regular residential property. That’s why we’ve put together a series of guides and articles to help you navigate the process from start to finish.
1. Getting Started
Is real estate investing right for me?
Before you get started, it’s important to understand some of the responsibilities and commitments that come along with owning a rental property – as the owner, you’ll be responsible for the maintenance and upkeep of the building.
The Basics of Real Estate Investing
Should I hire a property manager
How involved you are in the day-to-day running of the property is up to you, but if you prefer to be more hands-off you might want to look into hiring a property manager. In addition, you might want to consider hiring a mortgage broker or a real estate attorney to help with the buying process.
2. The Finances of Real Estate Investing
Your credit score
Now that you’ve decided to take the plunge, you’ll need to speak to a mortgage lender to begin financing your investment. One of the first things they’ll look at is your credit score, so make sure you have this as high as you can before speaking to a lender.
What Is a Good Credit Score In Canada?
The down payment
You’ll also need to come up with a down payment before you can begin the home buying process. The amount you’ll need for an investment property is a little more than you would for a home you’ll be living in yourself, so be sure to read up on this and plan accordingly.
How Much Down Payment Do I Need For An Investment Property?
Getting a mortgage
Once the down payment is taken care of, you’ll need to apply for the mortgage itself. This can also differ slightly for investors (especially if the property is worth over $500,000) so it can be helpful to familiarize yourself with the process early on. One of the benefits of an investment mortgage, however, is that you can have your tenants pay it off for you while you build equity!
3. Choosing an investment property
Finding the right home model
Once the finances are in order, it’s time to start looking for an investment home! Certain home models can be more suitable for investors, so be sure to consider all your options. For instance, if you’re considering owning more than one property, you could look into buying multiple townhomes or both sides of a duplex so you won’t have to travel around as much if you need to do an inspection or supervise any work that needs to be done.
The Top Home Models For Real Estate Investors
Buying a brand new home
While you can buy a resale home as an investment property, there are distinct advantages to buying a brand-new home instead. For instance, a new home will require far less maintenance and will be covered by a New Home Warranty. You can also be sure that an income suite in a new home will be up to code and won’t require any significant renovations to be legal.
Benefits of Renting New Construction Homes
Finding the right location
As well as the right home model, you’ll also need to buy a rental property in the right location. It’s important to consider the wants and needs of your potential tenants – for example, if you’re looking to attract young families who are likely to stay for a while, consider how easy it is to access schools from your location.