How to Purchase Income Property

Secure a loan for your investment property or pay for it in cash.

Income property is a house or apartment building a person buys to rent or promptly resell for a profit. This investment produces income for the property owner.

Search

Enlist the help of a real estate agent who specializes in investment properties. The agent should help you find properties in a desirable rental location. The projected monthly mortgage payment and expenses should be less than the rent that you will charge. Place an offer on the house.

Inspection

Obtain a list of rental housing occupancy guidelines for the property's city or town. Hire an inspector to check the building for structural and mechanical issues. You will want to be able to quickly place a tenant in the property or resell it, so take into account the time and cost necessary to bring the property up to code.

Loan Application

Secure a loan for your investment property or pay for it in cash. If you apply for a loan, be prepared for the mortgage company to have a tougher loan application process, due to the additional financial responsibility that you will incur with an investment property. You may have to pay a higher mortgage interest rate than for a primary residence loan.

References

• MSN Money: How to Find Good Investment Property
• Smart Money: Getting a Loan for Your Second Home