03/10/2022
Have you thought about investing in real estate and owning a rental property? If so, here are a few items to consider.
1. How much will it cost? To get a non primary residence loan, your down payment will need to be 25% down plus closing costs to get the best rates. If possible, when first starting, it's always best if you can convert your primary residence into a rental property. This way you are starting your portfolio with minimal out of pocket.
2. Will you manage the rental or use a property management company? Property management will cost you 8-10% of the monthly rent but will allow for more free time and less stress.
3. How should I plan/prepare for repairs? Plan to maintain a contingency budget for repairs, upkeep, and down times. A savings of 3 months of costs without any rental return is a good amount to start.
We have helped multiple clients find their first investment homes and start investing their way to financial freedom. If you are interested in learning more, we’d love to chat!
