Thinking About Investment Property? Here's What You Should Know

Exploring real estate investments, like purchasing a rental home, can be a smart way to build long-term wealth. Not only can rental income support your monthly cash flow, but home values may appreciate over time.

Types to Consider

• Single-family homes – Simple, lower upkeep, great for first-time investors
• Multi-unit buildings (duplexes, triplexes, etc.) – Higher income potential but more management required
• Accessory Dwelling Units (ADUs) – Garage or backyard apartments can bring rental income without buying a new property.

Crunching the Numbers

• Before buying, always factor in:
• Mortgage payments (principal + interest)
• Property taxes and landlord insurance
• Maintenance, repairs, vacancy periods, and management fees
• Financing Considerations
• Investment property financing typically requires:
• Higher down payments (often 15–20%)
• Higher credit scores and stricter lender requirements
• Ample cash reserves (covering 3–6 months of mortgage payments) to buffer against unexpected costs or vacancies

Start Smart

A rising trend, called "house hacking", involves buying a multi-unit property, living in one part, and renting out the others. You may qualify for a lower down payment because it counts as a primary residence. As a primary residence, you only need to commit to living in the property for the next 12 months. After 12 months, you can rent out both units and buy another property.

How Your Employee Homeownership Benefit Can Help

Navigating investment property decisions doesn’t have to be overwhelming. Through your Employee Homeownership Program, you’ll get:

• A Financial Fitness Consultation to walk through your situation and evaluate if investing makes sense for you
• Expert support identifying financing options that fit your goals
• Access to pre-vetted real estate agents who know investment neighborhoods and can guide you confidently

Ready to Explore?

Curious whether a rental property could be your next move? Reach out for a free consultation. You’ll gain clarity on whether rental investing aligns with your goals, and how your benefits can help make it smoother and less expensive.

Let’s get started on helping you build long-term financial momentum—whether you’re thinking of your first home or your next property venture.

SupportSquad@AdvantageHomePlus.com | (800) 511-2197

The information contained and the opinions expressed in this article are not intended to be construed as investment advice. Advantage Home Plus does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. * Real estate commission contributions are available as state laws allow.