Whether you’re planning on purchasing a home as a monthly rental property or short-term rental property, there are a few things you should consider before you jump the gun.
The first thing to do is look at your cash reserves. Prior to purchasing, know for certain if closing costs are included in the your financing. Owning a property also means you’ll have yearly expenses like property taxes and maintenance, as well as maintenance issues that might arise at any point during the year. You also need to be prepared for any time the property may be vacant from tenants or short-term renters and make sure you can cover the mortgage and other monthly expenses.
Make sure you have a good real estate lawyer to look over the contract. Also, have them look into the property to make sure there are no restrictions on rentals; Some home owner associations prohibit short-term rentals, as well as towns. Do your due diligence so you don’t end up having a sell the property because you didn’t do your research.
Keep in mind that being a landlord means you need to be available if the tenant or short-term renter needs you to deal with issues. Property management companies could be a solution but if you go this route, make sure you check reviews and find out of any fees that are additional to their monthly fee.