I am 25/f and graduated from college and now work for a great company and make 40K. I currently live in an apartment and am fine with that. I do want to buy an investment house somewhere on the east where it is cheap and use that home for rentals only. I would like to rent it out for more than what my monthly morgage is so I will have additional income coming in. How do I go about doing this? How do I know where the best place to invest my money in is? My credit is good and I make decent money I just do not know how to get started on all of this.
Any help, comments, advice is greatly appreciated. thanks
2007-04-28 08:58:45 · 7 answers · asked by Char 1 in Business & Finance ➔ Renting & Real Estate
First off, you have to find a realtor that can show you listings. You will need to find a home that you like. Then more than likely your realtor will connect you w/a mortgage broker, if not, there are tons in the yellow pages. You fill out all the paperwork, they obviously run your credit, and do their part and give you an answer as to whether or not you have been approved for that home, OR they will give you the amount that you have qualified for and you can house shop accordingly. It's very easy, actually if you have a good credit score and a good stable job. People always make it out to be so awful, but it's really not. Then, after you purchase the home, you can either enlist the help of a property management agency or you can put it for rent by owner. Once the property is closed on, it's yours!! Good luck to you! You can do it!
2007-04-28 09:04:50 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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2016-07-20 11:26:32 · answer #2 · answered by Patrick 3 · 0⤊ 0⤋
You did not say where you are located but on the east coast I know for sure cause I live there, U can purchase a two family home. So I would suggest you look into that and rent one part and live in the other so you will not have to be wasting your money away through renting of your previous apartment.
2007-04-28 09:13:02 · answer #3 · answered by tinnee 2 · 0⤊ 0⤋
Since the place will NOT be owner occupied , your mortgage % rate will be higher .
It usually takes about 5 years for the rents to come up to even = the mortgage , let alone make a profit .
You will only make a profit right away if you are a cash buyer .
Also , does not sound like you have maintenance skills (electrical , plumbing , roofing . . . whatever) so budget extra for that .
And news flash , the 'cheap' areas are cheap due to job / income issues , so be prepared for renters that stop paying and skip .
Overall , it seems your expectations are Not realistic , and you need to do much for homework on it .
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2007-04-28 09:08:10 · answer #4 · answered by kate 7 · 1⤊ 0⤋
The only peice of advice i can give is expect most lenders to ask, "why are you renting and purchasing a home?" This will send up red flags. Sites like zillow.com will help you guage the current value of the home and trends. Finally, make sure you have 3 months reserves. If your tennant walks you need that amount to ensure you don't fall behind. good luck!
2007-04-28 09:04:58 · answer #5 · answered by Michael 2 · 1⤊ 0⤋
I'd get a rental management company. Get a Realtor to help you buy your house first though. The rental management will do most of the work for you (but you have to pay a fee to them).
2007-04-28 09:06:08 · answer #6 · answered by Jaycie 4 · 0⤊ 0⤋
Rent-To-Own Homes : http://RentToOwnHome.uzaev.com/?CotV
2016-07-11 23:27:08 · answer #7 · answered by Chelsea 3 · 0⤊ 0⤋