This investment trend is becoming very popular.
Investing in real estate always involves more than just buying a house, doing some repairs, and selling it for a profit. Did you know that you can buy a house and make money without having to sell it?
Buy to rent offers you a way to make money from real estate without having to sell the property you bought. It may be that you want to live in the house in the future, or you prefer to become a full-time landlord; if so, buy to rent may be an excellent option for you!
What is buy to rent?
As the name implies, buying to rent means acquiring a property to rent it out to other people to live in while you earn income from the rental of that property. Although it sounds simple, buy to rent is a bit more complex than that.
For example, to make a profit, the rent payments must be higher than the maintenance costs, mortgage fees, and the payments to the property management company, if you hired one to manage the rental process.
Depending on the property you buy, you will have to pay for the necessary repairs if the property has any damage, in addition to taxes, insurance, and potentially the utility bills. So you must take this into account, otherwise, you could risk losing your investment and having to sell the property to pay the mortgage.
How do buy-to-rent mortgages work?
Buy to rent mortgages work like a regular mortgage, with a few differences. However, it is these differences that make buy to rent a profitable business and an excellent investment.
Buy to rent mortgages are interest-only, so the monthly payments will be lower since you will only be paying for the interest and not the entire amount.
You can request a buy to rent mortgage, buy the house, earn money from the rent during the payment term (15 or 30 years), and then pay off the mortgage by selling the property at the end of the mortgage period.
It should be noted that the profitability of this type of investment is based on the rent that you can charge your tenants, so you should purchase a property in a good neighborhood, close to schools and hospitals so that potential tenants are willing to pay more money for living in your property.
If you are thinking of buying to rent, we at 770 Capital Investment Group can offer you the top quality advice you need, so that your investment becomes a success! Contact us at 770-227-4825; we are ready to assist you 24 hours a day and give you high-quality real estate advice!