With vacancy rates, mortgage interest rates, and property prices still low many people are considering starting their rental portfolio. In order to start your rental property business, how do you finance your first home and get started?
If you can buy as an owner occupy and live in the property for 12 months you can get the best financing. Currently you can get a loan with as little as 3.5 percent with FHA financing and often times the seller may help with closing costs. After a year you can purchase your next property, live in it, and rent out the original. If you are thinking about your financial future and have time on your side this is an excellent way to get started.
If you want to buy a rental property without occupying, you will need 20 to 25 percent as a down payment for most loans and decent credit. If you have cash or CD’s this may be a good time to convert your liquid assets into an investment property and increase your rate of return.
Now is a very good time to buy investment property. With some thoughtful planning and a little hard work you can increase your income stream and plan your future retirement.
For more information about purchasing and financing investment properties in the Boise, Eagle, Meridian, or surrounding Treasure Valley area contact me at this link or call me at 208.890.8390. I’m always happy to assist with your real estate needs.