After the madness of the 2008 housing bubble, people all over America are once again clamoring to take part in the property market. You might even be thinking of buying assets yourself. After all, with a solid grasp of mortgages and smart investments, you can achieve a pretty good return on your investment.
Of course, this can be a huge financial commitment. To help you make a sound decision, here are some questions you should ask yourself.
Are my finances in order?
Even if lenders like Bonneville Multifamily Capital can help you with HUD multifamily financing, you should consider your personal coffers. Can your finances handle the down payment and monthly mortgage?
It helps to check whether your emergency fund is well stocked – if you have to reach into your retirement fund to make payments, you might want to rethink this decision. If you plan to rent out the place, check if you can handle the months wherein you’ll have to make payments without rent coming in.
Also, if you still have outstanding debt payments, you might want to wait until you’ve paid them off.
Can I handle maintaining multiple properties?
This applies especially to those who plan to purchase spaces and rent them out. As a property owner, you’ll have to expect the odd calls from your tenants, especially when repairs are needed. If you like having your weekends undisturbed, you might want to reconsider.
Can I work with an accountant and a real estate broker?
Let’s be real here: after you purchase properties, your finances are going to need some extra care. For one, your income tax is going to get very complicated, with your assets in consideration.
Additionally, if you plan to sell or rent out the property, chances are that you won’t have the time to take care of this yourself. Are you comfortable with the idea of having other people take care of these?
With these in mind, are you ready to take the plunge? If the answer is yes, then you made a good decision.