Investment Property in Atlanta
In today’s investment world, if you want income, interest rates are too low in commonly accepted bonds and banks to generate a return to supplement your income. One place that still offers a reasonable return is investment property in Atlanta.
An investment property in Atlanta is one purchased strictly for the purpose of generating income. It’s neither your current primary residence nor a vacation home used only by your family. An investment property is usually purchased with the intention of either renting it out or renovating it to resell at a profit.
Here are some of the benefits of investment property in Atlanta:
- You are your own boss: You choose what property to invest in, what tenant you will rent to, how much you will charge in rent, and how you will manage and maintain the property as a whole.
- Double the Profit Potential: An investment property offers leverage. In layman’s terms, that means you invest a relatively small amount of your own money, and borrow the rest, often four to twenty times more, from a lender.
- Rental income is money in your pocket after all expenses, which means
- Your tenants will pay your mortgage for you.
- Huge Tax write-offs: As arental property owner, you are entitled to huge tax deductions. You can write-off interest on your mortgage or on any credit cards used to make purchases for the property. You can write-off your insurance, maintenance repairs, travel expenses, any legal and professional fees, and even your property taxes.
A new wrinkle for real estate investors is the Federal Housing Administration’s 203 (k) Rehab Mortgage Insurance. The loans will be particularly useful to borrowers interested in purchasing distressed or older properties in poor condition.
To qualify for a loan guaranteed by the insurance, a home’s rehabilitation costs must be at least $5,000 and the total value of a property must fall within the FHA mortgage limit for an area. The total amount of a full renovation loan is determined before repairs or renovations are made to a home, with a maximum eligible repair cost of 50 percent of the “subject-to” value.
To make a full renovation loan, a lender must obtain a professional estimate of what the fair market value of a home will be after repairs are completed, Carrington said. Structural repairs qualify for the loan, including room additions, according to the lender.
Section 203(k) insurance enables homebuyers and homeowners to finance the purchase and the cost of its rehabilitation or the refinancing of a house and the cost of its rehabilitation. You can do all this through a single mortgage or to finance the rehabilitation of the existing home.
The types of improvements that borrowers may make using Section 203(k) financing include:
- structural alterations and reconstruction
- modernization and improvements to the home’s function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing; installing a well and/or septic system
- adding or replacing roofing, gutters, and downspouts
- adding or replacing floors and/or floor treatments
- major landscape work and site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements
HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.
If you are intrigued by investment property in Atlanta, call Val Buys Houses LLC. We specialize in helping homeowners out of just about any situation, no matter what and helping investors find investment property. There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home. We buy for cash, therefore we can help you sell it fast to resolve any situation, or give you as much time as you need.
We care about our community in Cobb county and Atlanta. At Val Buys Houses LLC, we take a lot of pride in providing excellent customer service. We have come across all scenarios, we are not here to judge; only to help.
Give us a call today at 404-844-8845 and let us see if we can help YOU!