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Purchasing Your First Rental Property? Here’s What You Should Know

New homeowners admiring their first property purchase It can be a fun experience to buy your first West Lebanon single-family rental property. But similar to several investments, there are some risks involved. Before you purchase, there are various aspects to consider to ensure that your first investment property purchase in West Lebanon becomes as profitable as you hope it will be. For example, you’ll need the answers to questions like whom do you want to rent to? What type of rental property will you concentrate on? How will you finance your purchase? In what follows, we’ll answer these questions and other essential topics you’ll need to know to make buying your first rental property a rewarding experience.

Define Your End Goal

When acquiring your first single-family rental home, one of the most important things to remember is to set clearly defined end goals. Before you begin your property search, you should make an effort to determine what qualities you are searching for in your investment property. For instance, you might want to look for properties in a particular area with a specific number of bedrooms or minimum square footage. You can also pursue a specific renter demographic, such as college students or retirees. If you know the details, you can refine your search criteria and locate potential properties more quickly.

Prepare Your Finances

Aside from determining what qualities you want in a property, it is recommended to prepare financially before getting an investment property. Industry experts recommend paying down personal debt and saving for a down payment before beginning your property search. Reduced personal debt can help you to qualify for better loan rates, while nearly all mortgage loans for an investment property will require a 20% down payment. Planning to finance in advance is another important step, but be mindful of high-interest loans or mortgage products that seem too good to be true. By prequalifying with a reliable mortgage lender, you will be ready to take advantage of investment opportunities as they arise. By prioritizing financial readiness, you will be able to acquire that rental property with greater certainty when the time is right.

Crunch the Numbers

After taking these crucial preliminary steps, it is good to begin searching for a suitable property. Throughout your search, keep in mind that you need to run a series of numbers on each possible property, such as your margins, operating expenses, and expected return. This is where a lot of new investors make costly blunders.

New investors must keep in mind to include all the expenses related to purchasing and preparing the rental property for lease, as well as ongoing property management, maintenance, and vacancy costs. Industry experts suggest a margin of 10% and a 6% return in your first year means you have a profitable investment.

Stay Objective

You should keep in mind that an investment property is just that, an investment. Getting attached to a certain property or letting emotions control your decisions is a bad idea. Additionally, the property you buy is not necessarily one you would ever live in yourself. Industry experts recommend selecting low-cost properties in high-demand areas for your first investment. But avoid fixer-uppers unless you are a highly skilled home remodeling expert or know a reliable contractor who will do the job at a lesser going rate. Your first single-family rental property should be regarded as the first step toward a long and profitable investment career rather than the end goal. In this manner, you can keep yourself on track and your investment properties in the black.

Design a Management Strategy

In the end, you should be aware that rental property is just the first step. A proactive management strategy is required to ensure the success of your investment. This is why engaging with a West Lebanon property management company can be beneficial. As local market experts, property managers can help you find off-market investment properties, analyze market conditions, set rental rates, and much more. As more knowledgeable investors will inform you, the right property management company is an important partner in successful rental property investing.


Once you’ve found the right investment property, make sure you work with the ideal West Lebanon property management team. Contact Real Property Management Beacon at 603-448-8808 to learn more.

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