How To Buy An Investment Property

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Here is another quick tip about buying investment properties. 

So you’re thinking about buying an investment property or income-producing property. Pay attention. This is very critical. A lot of people come to me asking me to help them finance an investment property.

To get you a loan for your investment property the first thing I will ask you for is Income and Expense Statements from the property


When your comparing investment properties, trying to decide which to buy, you’ll want to collect as much documentation as you can get from each property. With the proper documentation you can thoroughly analyze each property.  This will help you make a more informed, and a better buying decision for you and your family. 

Documentation Checklist

Income Statements 

  • Get a copy of Tax Returns
  • Get a copy of the Leases
  • Last 12 Bank Statements for the propertyIf the property is under LLC or a Corporation the rental income should be going to the corporate bank account.

Expenses Statements

  • Get copies of recent utility bills (12 months).
  • Get a copy of the property tax bill from the local municipality.
  • Get a copy of the property insurance bill.
  • Get a copy of the management company’s recent statements.
    These documents will give you insight and understanding with regard to the seller and how the seller handles their affairs is in regards the property for sale, and additionally, how the sellers are relating to the property

Analyze how the realtor describes the property.

Some Realtors may not include a management fee in their property expense category. If this property is a great investment you may want it managed for you. Therefore, a Management fee is something you will want to take into account in your list of anticipated property expenses.

If the seller already has a property manager, collecting these documents should not be a problem, because the management company should be tracking these expenses and depositing the money in the bank for current property owner.

Find out what the projected vacancy rate is for that area.

Often, the projections that the Realtors give you wont include a vacancy rate.  I strongly recommend you include a vacancy rate.  

I analyze investment properties. Investment opportunities are always a great discussion, but when you have the documents in front of you it’s a greater discussion. 

So as a Mortgage Loan Originator, I’m asking you to get these documents, bring them to an experienced Mortgage Loan Originator like myself.

If you only bring the property photos and brief description, we can’t complete the analysis. But, You can email me the documents, we can discuss the property over the phone or Skype. You and I will pick through the documents and have a good time putting all the details together. Before you spend money, we can get a clear idea about what type of investment you’re about to get into.

Marc Giles

About Marc Giles

Marc Giles is a registered mortgage loan originator (NMLS# 97969) with Arlington Financial (NMLS #5722) and a registered mortgage broker in New York State, Connecticut, and New Jersey Department of finance.

Marc Giles teaches you all about buying, selling, and owning a home.

DISCLAIMER: These blogs, videos, and articles are for educational and entertainment purposes only. This is not legal or financial advice consult your accountant or lawyers for that. Any results demonstrated in these videos are not guaranteed. You must apply and qualify. This is not an offer to lend. This is not a commitment to lend.

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