To Rent or Buy an Investment Property
Are you on the fence about whether to buy or rent your next home? While it is true the state of the Northwest Florida real estate market can effect this decision, often the largest factor that comes into play is your budget.
Aside from the common budget calculators that can determine how much you can stretch when you find yourself house hunting, there are a few things you should know regarding how much home you can actually afford.
Regardless of your decision to rent or to buy, the best way to find a home that you can afford is to shop with a set maximum price. This means setting your budget before you start looking for a home.
In either situation, the general rule of thumb is that no more than 1/3 of your monthly income should be allocated to housing. For the prospective buyers, you will want to factor in your target mortgage payment and consumer debt. This combination divided by .36 will provide you with your average monthly income needed to qualify for a home loan. Future renters will need to combine their annual income and divide by 40 for their maximum rent.
For more tips about owning and renting an investment property in Destin, contact our Gulf Coast property managers.