So you’ve found your dream Smoky Mountain cabin, now what? There are lots of facets to the investment process, so the TN Smoky Mtn Realty team put this guide together to help you navigate it. We know that real estate jargon can sometimes be confusing, but that’s why we’re here. Whether you’re a first-time investor, an experienced pro, or just curious how the process works, here are a few tips about investing in Smoky Mountain log cabins:
Hire a Smoky Mountain Real Estate Agent
Looking for an expert to show you how to invest in Smoky Mountain log cabins? The TN Smoky Mtn Realty team can answer all of your investment questions. Our real estate agents have over 20 years of experience and extensive knowledge of the local market. We are ready and willing to answer all of your questions!
Investing in the Smokies
When it comes to buying an investment property, location is always going to be an important thing to look at. If you are looking at Smoky Mountain log cabins, then you’ve picked an excellent location. Now you just have to figure out if you want a more secluded property or if you want something close to all the amazing restaurants, attractions, and shows the area has to offer. Choosing the right location is a great way to ensure you get a good return on your investment.
The Time to Buy
Now that you’ve found the perfect Smoky Mountain log cabin, you should ask yourself, “is it the right time to buy?” This can be determined by your personal finances and the current investment market. The best thing to do before buying a cabin is to put money away for your down payment. If you can save up as close to 20% of the cabin’s purchase price as possible for your down payment, then it’ll help you with your initial cost.
Nail Down the Finances
Financing investment property is different from financing your primary home. Lenders consider different things when someone is looking to borrow money for an investment property. They’ll look at things like your credit score, your debt compared to your income, and your assets. You can finance an investment property in the following ways:
Investment property/commercial lenders
Home equity loan or line of credit
Online calculators can show you what you’re estimated to qualify for and how that will impact your monthly payments. Make sure you also factor in insurance into your final cost per month. Then, you can look into renting out your property. You can charge more rent than what your monthly payments are, so you can make a profit each month. Managing a property can be time-consuming. You’ll want to consider managing it yourself or hiring someone to manage it for you. All of these things need to be factored in when you’re in the buying process.
How Buying a Smoky Mountain Log Cabin Works With the Closing Process
Once you find an investment property that meets your needs and get your mortgage approved, then you’ll be ready to start the closing process. To complete your real estate transaction, there are costs associated with closing. Closing costs usually include taxes and fees that both the property buyer and seller have to pay. These costs are outlined by the lender within 3 days of a home loan application. Closing fees can vary from one location to another. For an investment property, they are usually related to the mortgage. You can either pay the closing fees out of pocket or have them included in your loan.
Ready to get started? Give us a call at 865-280-2569 and we can show you how investing in a cabin works! Don’t forget to check out our website for Smoky mountain log cabins for sale.