Last year, we held an Investment Property Seminar at The Ukrainian League of Philadelphia. Attendees learned about the overview of investment property opportunities, how to finance an investment property, and the process of buying an investment property.
What is an investment property? It is a property that has been purchased with the intention of earning a return on the investment (purchase) either through rent (income), the future resale of the property or both. Below is a quick guide for getting an investment property. Ask yourself these questions:
- Why do I want an investment property?
- What are my short term v. long term goals?
- Do I need a pre-qualification?
- What are the different property types?
- What location is best?
- How much tax will I pay?
- How much is the property worth?
- What is the expected amount of rental income?
- What expenses will I incur?
- What are the risks that come along?
- What is the cash flow?
- Making an offer
- What is a reasonable offer?
- Do I counteroffer?
- How do I apply for a loan?
- What financing options are there?
- What loan is best for me?
- Do I fit the criteria?
- Have I prepared for the closing costs?
- Do I need an attorney?
- Am I ready for the settlement/closing?
- Post Purchase
- Have I reviewed the market analysis?
- Do I have a lease in place?
- Am I ready to be a landlord?
These are just some of the questions you need answered before getting an investment property. They are also just a few of the questions our Loan Specialists will ask you when talking to them about an investment property.
As mentioned in the Investment Property Seminar, “Location, Location, Location,” remains one of the most important factors for profitability in real estate investment. One of the most up and coming neighborhoods of Philadelphia is Fishtown. Peter Lane Taylor wrote in Forbes magazine:
“Home values here have nearly tripled since the Great Recession. Most single-family houses have an accepted offer in less than four weeks. Many sell in bidding wars. The current sale to list ratio is a scorching 98.8%, going toe to toe with Williamsburg (Brooklyn) and Washington, D.C. Two decades ago Fishtown was a dirty Philadelphia real estate word. Now every realtor in the city is trying to bolt another neighborhood onto it.”
Read more about this great neighborhood here: www.forbes.com
All of the education sessions are free! We will continue to host these sessions and look forward to seeing you at one in the near future. Stay tuned for upcoming events.
The Ukrainian League of Philadelphia is an organization of Ukrainian American citizens who have bonded together to form a group for the fostering and nurturing of the Ukrainian culture and heritage while still respecting and honoring the American culture and its freedoms. All employees and voting members of The Ukrainian League of Philadelphia fall within the Field of Membership and are eligible to become members of UKRFCU.