If you are thinking of buying a rental home, these are the investment costs. We have broken them down into 9 major cost categories. Many first time investors underestimate the costs of owning an investment home and are surprised when they find out there are things they never considered. To be successful in building long-term wealth as a real estate investor, it is important to understand all the costs or home ownership so that you can better predict future cash flows from your real estate investments.
Costs associated with real estate investing Acquisition fee – cash 2%, financing 6% of the gross purchase price Broker Co-Op – paid by Seller Repairs HOA Insurance Property Taxes Special taxes Property Management fees: 7 – 10% Improvements Maintenance
If you have questions about buying or selling a rental home please don’t hesitate to reach out to Todd or Oana.