Questions Most Often Received By a Hilton Head Real Estate Agent - Part 1

Will the rental income that I make on an investment property on Hilton Head Island cover my expenses?

To begin my series of “Questions most often received by a Hilton Head Real Estate agent”, I have to start with this one.   Sometimes the answer is “absolutely” and sometimes the answer is “no way”…but the first response I always give is..”Well, it depends…”.

So, what does it depend on exactly?  Some things we will have a great feel for up front.  I can help you figure out what the existing rental income is and, if it’s not currently a rental but you want it to be, I can obtain rental projections.  We can nail down the expenses to run the home including average electric, taxes and insurance, and any community dues you may be responsible for.

The big variable is…How much are you going to borrow?   It makes sense that if a property can’t bring in enough income to cover expenses not including a mortgage, then you better be buying it strictly to enjoy and know that you have enough disposable income to hit the payments without needing the rental income.

More often than not, however, rental income can easily cover expenses not including the mortgage with some left over.  Whether your “leftover” will cover a mortgage payment will depend on the size of the mortgage.

My job as a Realtor is to help you understand all of the ins and outs of owning income producing property.  I knew that darned accounting degree from MSU would come in handy J

 

For help evaluating Hilton Head Island Real Estate or Bluffton Real Estate, to live in or to invest, call Lorri Lewis at 843-422-6448.