Quote:
Originally Posted by Jake the King
Don't forget, if you buy "rental" property, the lending institutions will force you to put down 20% of the purchase price AND your loan for the other 80% will be at a higher interest rate. This is because "investment" properties are higher risk than residential purchases.
|
15%, and yes. Mortgage broker told me to expect the higher interest rate.
Quote:
Originally Posted by Jake the King
Since you don't really have all that much $$$ to work with, the perfect plan for you might be to just buy a place for you to live for a while with the plan of eventually moving out and then renting it out.
|
Exactly. However, the $20k is actually money
over buying a primary residence. Extra money to play with. Not needed for house. Already have that covered in pre-approval.
Quote:
Originally Posted by Jake the King
If you remain local to your rental property, you can probably manage it yourself. But, be prepared for an occasional call about a clogged toilet or a leaky something or other. If you move away from your rental property, or if you do not want to be bothered with calls from your tenants, pay a company to manage your property. It will cost a bit, but I bet you can find a small company that will give you a reasonable deal.
|
I still have friends, and family local. Some of who already have/run rentals. As well as the business partner who has some 40+ properties, and also runs his friend's properties in SW MI as a "management". So I have that covered.