The Purchase Process

With low interest rates and rising real estate prices, rental-property owners have done extremely well the past few years. And many potential buyers are hoping to get on the band wagon, but there is a big difference between buying that house or condo for yourself and buying property as an investment. Income property is an investment and your purchase decisions should be based on cold dollars and cents evaluations. Having an advisor like Lynx or HREA can dramatically increase your chance of succeeding and avoiding the potential pitfalls in the business.

The actual purchase of income property is similar to buying residential property in many ways, except the stakes can be much higher. For smaller units, particularly in the plex market, the asking price tends to be arrived at by comparing the unit to be sold with the selling price of similar units in the area that have changed hands recently.

Larger properties, on the other hand, tend to be priced according to gross rental revenues.

Don’t pay too much! Like any investment, making money in real estate depends on getting the right property at the right price. Relying on the experts at Lynx or HREA can give you confidence that the purchase decision you make is a good one, based on sound information.

Retain a good lawyer and a good accountant.

The rental industry is highly regulated. Lynx or HREA can recommend professionals that can help ensure your success as a real estate investor. Click here to view links to some of the professionals we recommend or contact us for recommendations.

Familiarize yourself with the tax implications of owning property. It will pay to do some research ahead of your purchase and we have an excellent set of tools to help you navigate the maze of tax laws pertaining to real estate. Click here for Tax Tips and Considerations

Prequalify for financing

As with purchasing a home, knowing ahead of time what you can qualify for will save time later. Buildings with more than four rental units are considered to be commercial properties and are evaluated using tougher criteria. Interest is charged based on the bank's assessment of the risk that is inherent in the deal. Contact us at (404) 477-2044 or email us at info@<Lynxre.comfor recommendations on commercial lenders or click here to view our preferred lenders.