Mortgage Basics

Investment Property Beginners Guide

A comprehensive guide to investment property beginners guide from NMHL mortgage experts.

NMHL Editorial Team2026-02-188 min read

<p>Investment properties are real estate properties that are purchased with the intention of generating income or profit. This can be achieved through rental income, appreciation in value, or a combination of both. Investment properties can be residential or commercial, and they can range from single-family homes to apartment buildings, office buildings, or retail spaces.</p><p>There are several benefits to investing in real estate, including the potential for long-term appreciation in value, rental income, and tax benefits. However, investment properties also come with risks, such as market fluctuations, tenant vacancies, and maintenance costs. It's essential to carefully consider these factors before making a decision to invest in real estate.</p><p>At NMHL, we offer a range of <strong>investment property loan options</strong> to help you achieve your investment goals. Our experienced loan officers can guide you through the process and help you find the best financing option for your needs. Whether you're looking for a <strong>conventional loan</strong> or a <strong>hard money loan</strong>, we've got you covered.</p>

<p>Financing an investment property can be more complex than financing a primary residence. There are several financing options available, including conventional loans, hard money loans, and private money loans. The best option for you will depend on your credit score, income, and investment goals.</p><p>Conventional loans are the most common type of financing for investment properties. They offer competitive interest rates and flexible repayment terms. However, they typically require a <strong>20% down payment</strong> and a good credit score. At NMHL, we offer <strong>conventional loans</strong> with competitive interest rates and flexible repayment terms.</p><p>Hard money loans are another option for investment properties. They are typically used for short-term financing and offer faster approval times and more flexible repayment terms. However, they often come with higher interest rates and fees. Our team at NMHL can help you navigate the process and find the best financing option for your needs.</p>

<p>Investment properties come with tax implications that can affect your bottom line. As an investor, you'll need to consider the tax benefits and drawbacks of owning an investment property. The tax implications of investment properties can be complex, but there are several benefits to owning an investment property.</p><p>One of the main tax benefits of investment properties is the ability to <strong>deduct mortgage interest</strong> and <strong>property taxes</strong> on your tax return. You can also <strong>depreciate the value of the property</strong> over time, which can help reduce your taxable income. However, you'll also need to consider the tax implications of selling an investment property, including <strong>capital gains tax</strong> and <strong>tax on rental income</strong>.</p><p>At NMHL, our team of experienced mortgage professionals can help you navigate the tax implications of investment properties and find the best financing option for your needs. We'll work with you to create a personalized financing plan that takes into account your investment goals and tax situation.</p>

<p>As an investment property owner, you'll be responsible for managing and maintaining the property. This includes finding and screening tenants, handling repairs and maintenance, and collecting rent. Property management can be time-consuming and require a significant amount of effort, but it's essential to ensuring the success of your investment.</p><p>There are several options for managing an investment property, including hiring a <strong>property management company</strong> or handling it yourself. A property management company can handle all aspects of property management, from finding tenants to handling repairs. However, they often charge a fee, which can eat into your profits.</p><p>Handling property management yourself can be more cost-effective, but it requires a significant amount of time and effort. You'll need to be available to handle emergencies, such as a burst pipe or a broken furnace, and you'll need to be able to find and screen tenants. At NMHL, we can provide you with resources and guidance to help you manage your investment property effectively.</p>

<p>Investing in real estate can be a lucrative venture, but it requires careful planning, research, and execution. With the right guidance, you can avoid common pitfalls and maximize your returns. At NMHL, our team of experienced mortgage professionals is dedicated to helping you achieve your investment goals.</p><p>Whether you're a first-time investor or a seasoned pro, our <strong>Investment Property Beginners Guide</strong> is designed to provide you with the knowledge and tools you need to succeed. We'll work with you to create a personalized financing plan that takes into account your investment goals and tax situation.</p><p>So, what's the next step? Contact NMHL today to speak with one of our experienced loan officers. We'll guide you through the process and help you find the best financing option for your needs. With NMHL, you can trust that you're in good hands.</p>
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Frequently Asked Questions

<p>An investment property is a real estate property that is purchased with the intention of generating income or profit. This can be achieved through rental income, appreciation in value, or a combination of both. Investment properties can be residential or commercial, and they can range from single-family homes to apartment buildings, office buildings, or retail spaces.</p><p>At NMHL, we offer a range of investment property loan options to help you achieve your investment goals. Our experienced loan officers can guide you through the process and help you find the best financing option for your needs.</p>

<p>There are several financing options available for investment properties, including conventional loans, hard money loans, and private money loans. The best option for you will depend on your credit score, income, and investment goals. At NMHL, we offer conventional loans with competitive interest rates and flexible repayment terms.</p><p>Our team of experienced mortgage professionals can help you navigate the process and find the best financing option for your needs. We'll work with you to create a personalized financing plan that takes into account your investment goals and tax situation.</p>

<p>Investment properties come with tax implications that can affect your bottom line. As an investor, you'll need to consider the tax benefits and drawbacks of owning an investment property. The tax implications of investment properties can be complex, but there are several benefits to owning an investment property.</p><p>One of the main tax benefits of investment properties is the ability to deduct mortgage interest and property taxes on your tax return. You can also depreciate the value of the property over time, which can help reduce your taxable income. However, you'll also need to consider the tax implications of selling an investment property, including capital gains tax and tax on rental income.</p>

<p>As an investment property owner, you'll be responsible for managing and maintaining the property. This includes finding and screening tenants, handling repairs and maintenance, and collecting rent. Property management can be time-consuming and require a significant amount of effort, but it's essential to ensuring the success of your investment.</p><p>There are several options for managing an investment property, including hiring a property management company or handling it yourself. A property management company can handle all aspects of property management, from finding tenants to handling repairs. However, they often charge a fee, which can eat into your profits.</p>

<p>Investing in real estate can provide a range of benefits, including the potential for long-term appreciation in value, rental income, and tax benefits. Real estate investments can also provide a hedge against inflation and a diversification of your investment portfolio.</p><p>At NMHL, our team of experienced mortgage professionals can help you navigate the process of investing in real estate and find the best financing option for your needs. We'll work with you to create a personalized financing plan that takes into account your investment goals and tax situation.</p>

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