By Marie Engen, Boomer & Echo
Special to the Financial Independence Hub
Buying an investment property is a popular option for many people looking for different ways to invest their money. Rental properties can provide you with steady monthly income and could appreciate in value over the years. But are you cut out to be a landlord?
Finding the right property
Finding the right property as an income producing investment is important. Do your homework. You want your rental to be attractively priced for your local market, and in a quality neighbourhood.
Related: How to invest in real estate
Consider a property that allows for multi-revenue, such as renting out the top floor and basement to different tenants.
If you’re handy you might consider a fixer-upper close to your home to renovate and maybe add a basement apartment.
Buying a property
To get approved for a mortgage you must put down 20% of the purchase price. Your mortgage lender will consider your credit score, income sources and market value of the property, just as with a personal mortgage. However, the key factor will be whether you can generate enough cash flow from the rental payments.