Purchasing an Investment Property in New York or New Jersey: Are Investment Properties Right for You?

• What is the area like and how will the area be in a few years - Doing a thorough investigation of the area you are considering buying an investment property in is critical to whether or not the investment will work out the way you plan.  When choosing a neighborhood to buy a house in you should choose one that will go up in value and not down.  Purchasing a home in an area that has a good chance of depreciating in value over the next few years will also cause your house to depreciate in value.  Make sure you choose a home that is located in an area that will benefit your investment.
  
• Are tenants an option - An easy way to make money off of an investment property is to rent it out to other people while the house is in your name.  Housing a tenant will help take the burden off of having to pay the mortgage on your investment property and you may even be able to arrange it so that you are actually making money off of it monthly but a major thing that should be considered in todays economy with unemployment being so high is "will there anyone who wants to rent the house?".  Do your research before purchasing the investment house and make sure that the area generates people that can afford renting a house. 
  
• Are you eligible for a low interest mortgage -  Being approved for a low interest mortgage will determine whether or not purchasing an investment property is something you should consider.  Interest rates are at a low right now and are at about 4%.  If you are eligible for a low interest loan you will be able to have low monthly mortgage payments and may make it easier to find a tenant because the amount of rent the tenant will have to pay to cover the mortgage will be low.