Investing in real estate is a great way to build wealth, but there are a few things to consider first.

 Do you plan to use the existing equity in your own home for a down payment?

There are a few ways to access your equity, including a Home Equity Line of Credit (HELOC) or a straight second mortgage—or even refinance your current loan and get cash out. The decision may be influenced by how long you plan to keep your current home or whether you’re intending to turn it into a rental or just sell it altogether. We can help you navigate the different scenarios and find the right way to use that equity for your new investment.

 What are the tax considerations in relation to buying an investment property?

Potential tax deductions may be a reason to consider buying an investment property, in addition to the prospect of positive cash flow. There are many items related to an investment property that you may be able to deduct, but it’s important to understand the impact of not only those deductions but also potential cash flow and how those will affect your taxes.*

 What will it cost?

You’ll need to know how much money is required for your initial investment but also what the anticipated monthly expenses are. You’ll also want to consider what you can get for rent and local vacancy rates to ensure you have a plan for any unforeseen vacancies. Another thing to consider is how to manage the property. Do you intend to manage it yourself or use a property management company?

 What are your goals for the investment?

If you plan to fix it up and sell it immediately, you may consider different financing than if you plan to make money by collecting rent each month over a longer term. We can show you all of the available options and work through the pros and cons with you to ensure you are making the right decision for your specific investment strategy.

 Do you need rental income to qualify?The ability to use rental income to offset the payments will depend on your history of being a landlord or investor. Every loan product is different, so be sure to consult with your loan advisor.*We are not licensed tax professionals. Please consult your tax or financial advisor for specific tax and financial information.