Did you know that you could use your Grantsville UT mortgage loan as investment? That’s right; You heard me correctly. You don’t necessarily need to rush around looking for “investment opportunities”. You have one right under your nose. You just need to look.
There are a number of ways to use the loan on your current house as an investment. Here are some ideas to get you started. Keep in mind, this is not investment advice. As a licensed real estate agent I’m not allowed to dispense that. These are just some comments to get you to thinking about ways to use the loan on your Grantsville house to better your financial position.
Understanding How a Mortgage Loan Can Be a Productive Investment
Most people tend to think of a mortgage loan as a necessary evil, an expense that has to be managed. But under the right circumstances, your mortgage can become a smart investment – something that makes you money instead of costing you money. With a little bit of ingenuity and a lot of hard work, you can turn your mortgage into a money-making investment that will pay dividends for years to come.
So how do you turn your mortgage loan into a productive investment? Here’s what you need to be thinking about.
A Mortgage Can Help You Buy A New Rental Property
One of the simplest ways that a mortgage can become an investment that adds value to your portfolio is by using it to buy an income property. If you are a first-time investor, the simplest arrangement is to buy a single-family home and rent it out. I would recommend searching for homes in Grantsville under $2000,000. Obviously the smaller the price tag, the smaller the debt service and the larger the difference between income (rent) and expenses.
If you live in a college town, you’ll find no shortage of students looking for housing – meaning you’ll never have a hard time finding renters.In Grantsville, the growing Campus of Utah State University@ Tooele, and Tooele Technical College can provide that security now as well as down the road.
In order to make this work, you’ll need to first have enough money saved up for a down payment. You’ll also need to have your rental rates high enough to turn a profit, but not so high that you have difficulty finding renters.
Finally, if it’s possible, you’ll want to consider turning the home’s basement into a secondary suite, allowing you to max out your rental income.
A Mortgage Can Give You A Home To Flip
The second major way that a mortgage can be a productive investment is by using it to flip a home. House flipping has become very popular in recent years thanks to a number of television programs like Flip This House – and although flipping a home can result in a major windfall, it’s not easy. In order to make a house flip work for you, you’ll need to carefully plan out the flip and ensure that you buy the right property at the right time.
Here are some posts from among other professionals about fixing and flipping homes that can give you a balanced look at that technique. Both ….. the pros and the cons
Fix and flipping homes may seem like a pretty simple concept. Buy a house that needs some work, fix it up and sell the house. The truth is it takes a lot of time to …
Beginning flippers should usually start with an older bungalow. You’ll need a solid credit score to secure the mortgage, and ideally, you should make your down payment in cash. You’ll also want to ensure the home is in a good neighborhood – this will make it easier to sell the home when you’re done renovating.
A mortgage is often thought of as an expense, but if you plan on buying a rental property or flipping a home in Grantsville Utah, it could be a very smart investment. Of course there’s risk involved, there always is, but …….with the right mortgage and the right home, this could be a good start to building a portfolio for the future.
Need an agent?
Want to talk more about this?
Give me a call. Berna Sloan 435-840-5029. I can’t give legal or investment advice, but I do know where the best home buys are in Tooele County, and I can recommend a few mortgage lenders that we can count on to help you use your Grantsville UT mortgage loan as investment vehicle.