Anyone living in Johns Creek who is thinking about taking on an investment property should be sure to account for ongoing expenses when calculating the costs of owning and maintaining the home. It is important to plan for the unexpected and also to take into account all known costs when making the decision to buy and how much to spend. You are more likely to get a good return on your investment if you set aside enough money to properly take care of your Johns Creek property.
Be smart in the type of mortgage and insurance that you decide on. If you can, put as much down as possible to reduce the amount of interest you need to pay. Choose a fixed rate mortgage if it is important that your payments do not change, and do your research to make sure you are properly protected by insurance. There are several types of insurance to consider, including building insurance, landlord insurance, and contents insurance. Sit down with a professional, talk about what type of use you expect to have at your property, and decide on the proper coverage.
Make a Budget for Your Property for Repairs and Insurance
Two other costs to keep in mind are maintenance and repair and property management fees. Depending on the condition of the property at the time of purchase, some matters may need to be attended to right away. Other things will pop up at unexpected times. Who knows when the furnace will stop working or the roof will need to be replaced. It could also be a good idea to put a little money into the house and make it nicer so that you could charge a higher rate and make the property more appealing. Lastly, some people living in Johns Creek may prefer to manage their property on their own, but that can be very stressful. A property manager can take care of communicating with tenants, staying on top of maintenance, and being there to take care of issues as they come up. This convenience, however, comes at an added cost and will need to be taken into consideration when calculating ongoing expenses.
For additional tips on buying your first rental property, click here. Our team has experience with investment properties and many of our agents own their income properties. Let us help you make the leap today!