- 1). Find existing income properties owners in your area that are looking to sell. Check Craiglist and your local classified section for landlords that want to sell their property.
- 2). Contact the seller to set up a meeting. Tour the property and learn about its physical condition. Be sure to get a full property inspection done, but before paying for a professional one, take a quick hands-on look at the roof, water heater and HVAC.
- 3). Negotiate a sale price. You can negotiate the purchase yourself or work with a seller's agent. If you have a lot of experience in real estate dealings you may be able to go it alone, but if it's your first income property deal you may want to consult an expert.
- 4). Get a mortgage. Banks will make loans for income properties but will generally require a larger down payment, higher interest rate and better credit score than they require for primary home mortgages.
- 5). Keep it rented. Having paying tenants is the only way to have a successful income property business. Run background or credit checks on all your tenants and have a well-written lease agreement signed by each one.
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