Consider a Property With a Suite to Help on Mortgage Payments
Buying a home can be a huge undertaking. Not only that, it requires a large financial commitment. Purchasing a home with rental units is a great option for first-time homebuyers that are seeking a home to live in and build equity. It is also a great idea for those looking for additional revenue from those rental units.
First-time homebuyers should talk to their real estate agent. They look for properties that have these ready-built suits or have the potential to build one. A property with separate entrances and two kitchens or water hook-ups is ideal for rental units. Kitchens are one of the more expensive rooms in a house to finish.
Using Basements as Rental Units
First-time homebuyers can also look for newer homes that have unfinished basements. This lowers the purchase cost and allows for a mortgage where cash improvements, a home renovation loan or line of credit secured on the home to finish the basement into a rental unit. Just ask your real estate agent to look for properties that have a walk-out basement or homes where a separate entrance can be easily implemented.
In the future, a suited property could become a rental investment property for the first-time home buyer. Rent from this property could cover your outstanding mortgage payments and generate a profit. Moreover, you can use the equity built in this property to secure a down payment toward a second home. This is ideal when you have a family that is outgrowing the current space.
Call in the Pros
A big part of getting the best home and mortgage rates homes being used as rental units is having the right help. Find a real estate agent in your area that knows the community. They should also be eager to find a home that fits your needs and budget.
Homes that are able to build equity and provide rental income could help to make the financial aspect of buying a home much easier.
Apply for a mortgage pre-approval and make use of the free and easy online mortgage calculator. This will help you make a budget and know what you truly can afford. And always remember the old real estate saying: location, location, location.