Buying Investment Property Expert Tips for Investment Property & Home Buyers by Diala Taneeb September 24, 2016January 19, 2022 by Diala Taneeb September 24, 2016January 19, 2022 Whether you’re looking for a personal residence or an investment property, it’s important to know the best practices in buying a property. To get the best tips about real estate and financing, we talked to Nawal “Noel” Hamad, a realtor with Solutions Realty Group and former V.P. Financial Adviser. She has vast experience with financing, several rental properties, and is currently a licensed realtor in Virginia and Maryland. After chatting with Noel, we wanted to share her top tips for home buyers to save money and protect their credit scores. 1. Paying 30-year Mortgage Plan In 18 Years Buyers should choose the 30-year mortgage plan as oppose to the 15-year in order to make lower payments. If the borrower makes just one extra payment per year, a total of 13 payments, then the loan is paid off in 18 years instead of 30 years. This way you’re paying less and finishing in a shorter amount of time. 2. Condo Fees Aren’t Worth It Noel says the best investment anyone can ever make is owning at least one townhouse or single-family home. Condos, however, should be avoided because of the high HOA fees. While they take care of maintenance and amenities, the extra costs aren’t really worth it. Some HOA fees can be as much as the mortgage payment, which could be put toward another investment. Of course, this depends on the lifestyle and location of the buyer. Some HOA fees are minimal and do affect cash flow as much. Related: Invest in Condos or Single-Family Homes? 3. Deposit, Not Down-Payment While a deposit is required, avoid making a down-payment until your current home has been sold. It’s important to make the deposit contingent upon the sale of the old property and upon the inspection of the new property. One mistake Noel often sees is buyers making a down-payment without securing the sale of their own home, which means gambling a significant amount of money. Related: Why You Should Get A Home Inspection Before Investing In Property 4. Comparing Nearby Prices An easy way to evaluate home values is by comparing the neighborhood prices and property types. Compare the listing price of the potential residence or investment property and try to understand if and why there are differences in the prices. Doing some digging will help you know what the property is lacking or has to offer that other properties don’t offer. It also tells the buyer what they can do in that neighborhood to increase the value of the property should they sell in the future. Related: How To Find An Investment Property Using Analytics 5. Keep Your Credit Up Noel says your credit score is the core in shaping your financial future. Noel has had to turn applications away because a seller or landlord would not accept any offers or tenants with low credit scores. By maintaining good credit, buyers can gain better interest rates and negotiating power in terms of closing costs and other fees – which can save a good amount of money. Want more tips about real estate or investment properties? Buying or selling in Virginia or Maryland? Email Noel at [email protected]. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL CondoDown PaymentMortgageProperty Prices 0 FacebookTwitterGoogle +PinterestLinkedin Diala Taneeb Diala is among the most experienced content marketers at Mashvisor. She loves writing about everything real estate including investment strategies, how to buy a profitable rental property, and the best locations for investing in real estate. Previous Post 5 Skills Needed For Real Estate Investing Next Post How to Become a Successful Real Estate Agent Related Posts Writing a Real Estate Offer Letter: 9 Things to Include How Do You Find a Buyer’s Market in the US Housing Market in 2018? Can You Still Find Below Market Value Homes for Sale in 2019? Real Estate Investment Strategies That Will Help You Invest Like a Pro Buying REO Property: 8 Tips Investors Need to Follow Learn How to Wholesale Real Estate Properties for the Maximum Profit The Best Types of Real Estate Investment for Beginners 5 Property Valuation Methods Every Real Estate Investor Needs to Know How to Calculate ROI on Rental Property: The 2022 Guide Real Estate Investors Want to Know: How Much Are Closing Costs? Phoenix Real Estate Market Forecast 2018 Do You Need to Hire a Foreclosure Specialist When Buying a Foreclosed Home? Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.