Tips for First Time Investment Property Buyers
The city of Kamloops is one of very few cities in British Columbia with low vacancy rates (below 2%) and a housing market that is still reasonably affordable. Buying an investment property can seem like an overwhelming task, especially if it is your first one. In order to make the process an enjoyable one, it is highly important to seek out a professional who understands all the intricacies of purchasing and managing an investment property successful. Each member of The Empire Group owns multiple investment properties with more than enough personal experiences and expertise to go around. We have all experienced good tenants and bad tenants throughout the years and thus have been able to formulate a strategic guide to assist buyers in finding the right property as well as insight into proper tenant selection. Below are 10 key suggestions when buying your first investment property:
1. The most important key point is to talk to a mortgage professional and find out exactly where you stand, financially speaking.
2. Research the provincial and local tenancy laws and restrictions and understand them throughly.
3. If you are purchasing a house that is currently tenanted, do your due-diligence to ensure you are acquiring trustworthy tenants (references, credit checks, most recent rental increase, etc.)
4. If you are selecting fresh tenants do your due-diligence with them as well.
5. After you have purchased your investment property talk to your neighbours, create some allies and friendly acquaintances that have your contact information in case anything goes sideways.
6. Hire a professional Home Inspector. This is particularly important especially because you will not be living in the house and it is good to know of possible problems before they may start.
7. Choose a location that is close to various amenities. Whether that be schools, grocery stores, or what have you. This will help maximize your rental property’s attractiveness to prospective tenants.
8. Know the type of tenant you want to rent to and choose your rental property location based on that target. Location is important if you want to rent to students, families etc. The various neighbourhoods in Kamloops all offer different things so know what is offered where you buy.
9. If buying an additional property is not in the cards for you and your family consider selling your current home and purchasing a multifamily home you can rent as well as live in. Basement suites offer a great opportunity to get your feet wet in the world of owning an investment property.
10. The goal is to be cashflow positive. Being positive every month is the best way to limit your risks, especially as a first time investment property buyer.