Once you’ve decided that you’re going to start investing in real estate, you need to understand your financing parameters. In some ways, qualifying for investment property financing isn’t much different than qualifying for a residential home purchase. In other ways, it can be a lot more challenging.
It’s not just about how much cash flow you can make, but how much can you keep!
When you’re investing in real estate, you want to keep your eye on the cash flow of the property. This is how much money you’re able to make after you’ve paid all of your expenses.
As the COVID-19 pandemic continues to unfold, many industries have adapted to overcome the unique challenges presented by the virus. The real estate industry, in particular, has witnessed changes across the board; from how we view and purchase properties, to the standards for qualification set forth by mortgage lenders.
To come out on top in real estate investing, you need both dollars and sense. When you buy a property, you’re investing tens of thousands of dollars into a single investment vehicle.
So you were able to purchase your own home with five percent down (although the minimum down payment required changes depending on the purchase price of your property). As a real estate investor, how much you will need as a down payment for your investment property is dependent on whether the property will be owner-occupied or not.
Although qualifying for a mortgage as an investor involves many of the same basic considerations as if you were purchasing the home for yourself, you may find that there is limited information online specific to purchasing a rental or investment property.
When thinking about Leduc, think central location and think business and commerce. With a great deal of amenities including parks, schools, and recreation facilities, the city is vibrant and bustling.
In case you haven’t heard of Leduc before (we’re talking to our out-of-province investors) here’s some information you might want to know: