Investment properties, Income Properties, Rental Properties… Whatever you want to call them, they are a great way to produce income and build wealth for the long term. Investment property mortgages are easier to get than you may think. Some banks will let you use all the rental income to offset the costs of the investment property mortgage, and so the rental income really helps you to qualify. The minimum down payment is usually 20% on a Rental property purchase, so substantially more than if you are buying your own home.
Investment properties and investment property mortgages have many tax deductions for you to take advantage of as well. Of course, rental income you collect from the tenant is included on your taxes as rental income, but you also offset that income with expenses. Please check with an accountant. Here is a list of expenses landlords have deducted in the past:
Hiring an Accountant is a good idea, and here is an example as to why: The repair deduction can be a tricky one. The repairs made to the property must be of a maintenance nature. For example, you can deduct the cost to install a new water heater after one has broken, but building a new deck or a large kitchen renovation will be treated differently as a capital cost. If you have questions about this talk to your tax accountant, and they will know how to help you!
If you are interested in checking out an investment property mortgage, you should contact a mortgage broker. A mortgage broker can take your information and help with a lending strategy find the right lenders that will approve you for what you want to do. Here are some things to consider when you are looking at investment property mortgages: