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Buying my first rental
Posted on 7/27/16 at 1:31 pm
Posted on 7/27/16 at 1:31 pm
So, I am in the process of buying my first rental property. Live-in tenants locked in for the next year, very low-value home, but income stream is around 3%/month if I purchase at asking price (dont plan to). So my main question is, even though I can afford the 20% down on the house, id prefer not to put that much down and use it for upgrades on the properties. Are there any loans, whether government/private/banks that do not require the 20% down? I know I could go hard money, or ask a relative, but I'd prefer to do that as a last resort. If I put more collateral down than the house, for example, my car, would that lower the DP minimum?
5
Posted on 7/27/16 at 2:12 pm to darnol91
I can't remember off the top of my head.... but someone will post about "life of the loan" PMI changes and the level needed to avoid it
Posted on 7/27/16 at 2:58 pm to darnol91
disclaimer, i dont do real estate
but - based on prior posts about this, the idea is to avoid PMI because it essentially eats your profit...i would imagine you would want to get rid of PMI up front otherwise you will be forced to have it for life of loan or later refinance (both seem bad ideas for a rental)
but - based on prior posts about this, the idea is to avoid PMI because it essentially eats your profit...i would imagine you would want to get rid of PMI up front otherwise you will be forced to have it for life of loan or later refinance (both seem bad ideas for a rental)
Posted on 7/27/16 at 3:17 pm to HailToTheChiz
I haven't looked in about 6 months, but at that time I was unable to find anyone to do a traditional mortgage with less than 20-25% down on an investment property. Things may have changed or you may have someone local that can do that for you.
If you have equity in your primary residence, you could do a HELOC until you had enough equity to turn it into a mortgage.
If you have equity in your primary residence, you could do a HELOC until you had enough equity to turn it into a mortgage.
Posted on 7/27/16 at 4:31 pm to darnol91
I've found that if they know it's an investment property, they will require 20% down. Hard to get around that if you have tenants already.
Posted on 7/27/16 at 6:34 pm to darnol91
You ain't getting shite without 20% down on your first 4 properties and 25% after that for SFH WITH MOrtgages backed by Fannie Mae on NOO Properties.
Good luck!!!
Good luck!!!
This post was edited on 7/27/16 at 6:40 pm
Posted on 7/27/16 at 9:16 pm to darnol91
Cars are not usually used for collateral for real estate.
Cars depreciate fast.
Cars depreciate fast.
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