How to Save for an Investment Property

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While there’s no such thing as a sure thing when it comes to investing, investment properties have a long history of bringing in returns. Even with the downturn in the housing market, those who had done their research and picked their properties carefully saw impressive returns when compared to other options out there. However, picking the right property is only half the battle. First, you need enough money to actually purchase it. This is a challenging proposition for most people these days, but it’s far from impossible.

One of the easiest ways to approach this goal is by first being owner-occupants. So, purchase a home you actually want to live in for a certain period of time. The main advantage here is that you’re not paying two mortgages right away. Plus, if you purchase a VA or HUD-approved property you can get a much smaller down payment than you otherwise would so long as you live in the home for at least a year. While it can be a bit of a hassle to move regularly (especially if you have small children), this is a great way to get the properties you want and save money in the process.

Another method many people have used is to actually become a real estate agent themselves. At first, this may seem like a strange strategy as it involves spending money and putting in a lot of time to get licensed. However, by acting as your own agent when you purchase properties, you’ll save thousands of dollars. As time goes on and you take on more investments, this money can really add up.

Lastly, look for homes that are listed as having seller financings. Although the seller may want a premium for their financing, you can still save on a down payment, which makes all the difference early on.

Owning investment properties is a great way to accrue money over time. So if you’re having trouble financing these purchases, put the above advice to work.

Source:

https://www.mint.com/blog/investing/4-money-saving-tips-for-buying-investment-property-0913/