PURCHASE
STEP 1.
1a. Determine Investment Goals
AP Destination Rentals’ exceptional mission makes us highly selective of our associates.
For those who desire to venture alone, we provide every step and reference for FREE. We never want to withhold knowledge.
For first-time investors, real estate is more active than passive compared to stocks, 401ks, or mutual funds.
It requires effort but will yield high returns from calculated risk. Click Here for our recommended investment goal questions and an additional real estate investment guide.
1b. Assess Personal Finances
In addition to understanding your goals, we request a transparent view of your financial health and how it compares to your risk tolerance and desire for sweat equity.
Sweat equity refers to improving a home through your own labor, like painting rooms yourself instead of hiring professionals. When starting with investment properties, doing the work yourself can save money and allow you to allocate funds elsewhere.
If your financial situation isn't ideal, there's hope! Our expert financial advisor will help with budgeting, revenue strategies, and investment plans to make property purchases financially feasible.
Click Here for our financial advisors contact information.
1c. Analyze the
STR Market
AP Destinations focuses on intentional purchasing. Explore the area—whether by driving, walking, surfing, or visiting local spots—and note why you love it. Check if your reasons match those of other visitors. This helps us assess if your enthusiasm aligns with a sound investment. Click Here for our question exercise and a website link to determine comparables and market growth.
1d. Analyze a Deal & Find your Property
Finding a property is dynamic and exciting. With a high quality team supporting you, we know you’re in good hands to make a sound purchase and investment.
MILITARY MEMBERS:
You have a situation that's straightforward yet challenging. We'll identify which counties around your base allow STR permits. This will likely influence where you purchase.
TRAVELERS & INVESTORS:
The world is your oyster even if permitting restrictions still apply. Choose a STR friendly area.
1e. Obtain Financing
To finance a deal, you must carefully calculate your debts, expenses, and verify the home is sound investment.
Click Here for a list of our recommended lenders to obtain a pre-approval letter from the bank. This letter certifies you’re able to meet your monthly payments and ability to make an offer on a property.
Military Members: AP Destinations assists military members relocating to new duty stations, travelers buying homes to live in for at least a year, and investors seeking second homes. Military members are eligible for VA loans with 0% down and no PMI. You can have multiple VA loans. Verify your VA entitlement for different US cities.
Travelers: While exploring an area for an extended stay, buy a home and rent it while away. Conventional loans require 3% down for single-unit homes and 5% down for 2-4 unit homes. PMI is required with less than a 20% down payment but is removed once 20% equity is reached.
Investors Must pay 10% down for a second home intended for rental.
Calculate your STR Upfront Expenses:
STR Upfront Expenses= Downpayment + Closing Costs + 3 Months Mortgage Savings + Design/Build Costs + Furniture + Decorations + Home Necessities
1f. Submit an Offer
The offer marks the beginning of the deal and negotiation phase, requiring a skilled real estate agent. AP Destinations connects you with experienced agents who handle complex issues like HOA documents and major property problems (foundation, water, electrical, plumbing, HVAC). These agents ensure your offers are appropriate for the property and that contracts include exit clauses if needed. Click Here to access our list of recommended realtors.
True negotiation begins once you're under contract. Both parties have more at stake, so always include contingencies to protect yourself and provide an exit if the deal turns unfavorable before closing.
1g. Conduct an Inspection & Appraisal
Inspection:
The inspection period can be a bit stressful because it can and should shed light on all the flaws of the home. A good inspector should eliminate the honeymoon phase of your home. Unforeseen or undisclosed issues can be grounds to break the agreement, continue your search, or seek reimbursement, upgrades, or compensation. Click Here for a copy of our top 10 questions to ask to avoid immediate major expenses.
Appraisal:
An appraisal is conducted by a market value expert hired by the bank and verifies that the loan amount is appropriate based on the property's resale value. Appraisers assess your home's value using metrics like size, location, condition, and upgrades, comparing it to similar homes in the area. They may consider market demand to justify their assessment.
1h. Negotiate with Seller
Today, negotiations are typically done via Docusign, including any changes to the initial offer. Include favorable clauses, such as the right to cancel based on home inspection results. Clear and flexible contract terms give you better control and ease during negotiations. This is where our top-notch real estate agents and lending teams excel.
Click Here to see other coverage requirements prior to closing.
1i. Close the Deal
Closing day is here—the moment you've been waiting for to build something great.
On the day of closing, remember to bring a pen with plenty of ink because you’ll be signing a lot of papers!
THINGS YOU’LL NEED TO REMEMBER:
- Choose a closing agent to handle the paperwork.
- Ensure your loan is approved and confirm the final closing costs.
- Verify all repairs are completed; conduct a final inspection.
- Bring a pen with plenty of ink for signing numerous documents.
Have Any Questions?
Feel free to reach out to us if you have any questions about the home purchasing process. Our team is here to assist you every step of the way.