Tips to Being a Successful Landlord


The ultimate goal of investing in rental property is turn a profit. To make sure that you achieve that goal it is essential that you follow several critical guidelines.

First, always make sure that you check references. This can be a burdensome step that many landlords overlook if they feel as though they have a good instinct about the tenant when they meet with them. Not checking references; however, can lead to a number of problems. You can uncover a wealth of information about potential problems before you rent to a prospective tenant.

Always make sure that you have everything in writing. This is to protect not only your rights but also the rights of your tenants as well. Everything from the code of conduct you expect tenants to abide by while renting your property to the rental application itself should be in writing.

You will find that you have better success with your rental property if you take the time to ensure that it is both secure and clean. The grounds of the property should be free of clear and trimmed regularly. Not only will the property be more visually appealing but these actions will also assist you with property liability. You will also want to take additional security measures. Extra security may be able to lower your insurance premiums as well as provide an incentive to quality tenants to rent your property when they know it is secure.

If you make the decision to hire a property manager, take the time to interview prospective candidates very carefully. Property managers can be quite helpful if you do not have the time to tend to all of the details yourself. The wrong property manager; however, can cause you tremendous problems. This means that you will need to hire a thoroughly responsible and professional individual to handle the job.

Always make sure that you obtain adequate insurance. Not only should you have property insurance but you should also have liability insurance. One incident is all it takes to wipe out your investment. Check with your state to determine if any additional insurance coverage is required.

Regardless of the condition the property was in when you purchased it, there will come a time when repairs are needed. This is part and parcel of owning rental property. If you take too long to make repairs, not only will your property suffer and repairs will ultimately cost more to take care of but you will also likely lose quality tenants as well. By making sure that you handle repairs promptly you will be able to maintain the life of your property as well as retain good tenants.

Always make sure that you follow all applicable regulations in the renting of your investment property. The Fair Housing Administration Act provides precise regulations in order to prevent discrimination. If you violate those regulations you could find yourself facing a lawsuit that is costly in terms of time as well as money. The best course of action is to take the time to do your homework and consult an attorney experienced in real estate matters for guidance regarding the FHA as well as ensuring that you have the proper forms.

Finally, make sure that you do not violate the privacy of your tenants. Check with your state’s regulations to find out whether you must provide any type of notice to your tenant before you enter the dwelling.

Following these guidelines will help you to retain quality tenants and avoid any potential legal problems.


July 17, 2010 · admin · No Comments
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Security Deposit Matters


As a rental property investor, you will find it necessary to collect money on a regular basis. Generally, your income will come from rental payments; however, you will also need to collect a security deposit. A security deposit is used as a type of security to ensure that the property will be maintained well during the time of the tenant’s occupancy and also that they will not leave without paying their final rent. In the case that either of the above circumstances should occur, you will have the security deposit to serve as a recompense for the money you might would otherwise be out.

The exact amount of the security deposit which you collect will vary depending on circumstances. Some states have regulations regarding the amount of money that can be collected for a security deposit. Ideally, it is best to collect the largest deposit allowed in order to ensure that you do not run into any problems later on. Where allowed by law, many landlords find it beneficial to collect a security deposit that is equal to one and a half times the regular rent. There are some circumstances which may dictate a change in the normal amount of the security deposit which you collect.

For example, if you allow pets and the tenant has a pet, you may decide to collect a larger security deposits. The same would be true for other circumstances such as if the tenant has a waterbed, does not have any references, etc. In these cases, you may decide that it is a good idea to collect a larger security deposit than you would normally collect to cover the risk you are taking on; provided, of course, that you are allowed to collect a larger security deposit under local law.

Security deposits should always be paid in full prior to the time the tenant moves in. Keys should never be issues until a security deposit has been received in full; otherwise you will find that the purpose of the deposit has been defeated. It is simply not a good idea to allow tenants to pay a security deposit in the form of several payments. If you do so, you will likely find that it is veritably impossible to collect all of the security deposit once the tenant has moved in.

Ideally, security deposits should not be paid with a personal check as you run the risk that the check may not be good.

Remember that it is always important to check with and follow your state’s guidelines regarding what you must do with the security deposit after you have received it.

Generally, it is better if you do not complicate matters by labeling the different parts of a security deposit. In the past many landlords charged a variety of different deposits including a key deposit, last month’s rent, cleaning deposit, etc. This can become quite confusing very quickly and unfortunately, many landlords found that tenants still tended to move out without paying a last month’s rent because it was already paid. These types of tenants tended to leave the unit in a terrible conditions and necessary repairs that the deposit did not cover. You may even wish to state in your rental agreement that the security deposit is not to be used for the last month’s rent.


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Planning ahead for Maintenance and Repair Costs


One of the biggest problems for many rental property investors can be failing to plan for maintenance issues in their budgets. While it can certainly be quite tempting to see all income over and above the mortgage payment as profit, this can be dangerous when something breaks and you realize you do not have a budget to cover the cost of repairing it. The simple fact is that regardless of how well maintained your property might be, things can and will break from time to time so the best course of action is to plan ahead and budget for it so you do not struggle later on.

Ideally, the best time to begin thinking about your repair and maintenance budget is before you actually purchase the property. When you are looking at the numbers associated with the potential investment you will need to make in the property, it is essential that you take repairs and maintenance into consideration. Unfortunately, many investors completely forget to allocate funds they will need for repairs of the property and instead only take costs associated with taxes, fees and mortgages payments into consideration.

First, you need to consider those repairs that can be foreseen relatively easy if you are observant. For example, take into consideration the age of the roof. Generally, by studying the condition of the roof you can usually determine when you will need to replace it, more or less. The same is true of the home’s main systems including the air conditioning system. By taking into consideration the natural lifespan of many of these items you can typically predict when you will need to come up with the funds for these replacement costs.

When considering the potential repair and maintenance costs you may run into as you shop for property, it is important to take several factors into consideration. Property type should be one of the first factors you consider because the type of the property can affect repair costs later on. For example, if you purchase a brick property you certainly will not have to worry about painting it in a few years.

The size of the property should also be taken into consideration. Smaller properties are typically easier and less expensive to maintain than larger properties. Larger properties are more expensive to maintain because it simply costs more money for repair and maintenance issues such as replacing the roof, repainting the exterior and exterior, etc.

Surprisingly, the location of the property can also play a role in how much you need to budget for repairs as well. Take into consideration the distance of the property from your location. If the property is located more than 30 miles from where you are located, you are going to spend more money traveling to the property and that can add up quickly.

Finally, consider how you plan to manage the property. Do you plan to handle most of the maintenance work on your own or will you hire help? Hiring outside help can be more expensive overall; however, you must also consider the amount of time you have available for making repairs and your own skill and experience level.

It is also important to remember that there will typically be some problems which will come up completely unexpected and unscheduled. You will need to make sure that you budget for these items as well so that they do not hit you too deeply in the pocketbook. Generally, it is a good idea to plan an annual budget of between 1% and 2% of the value of the property for repairs which may come up unexpectedly. For example, if you have a $100,000 property you would need to plan to spend between $1,000 and $1,500.


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Notices, Disclosures and Addendums


When you invest in rental property, it is important to understand that much of what you can do is guided by local, state and federal regulations. In many cases, these regulations provide guidance for the disclosures which must be made to all tenants. This is a matter of law and failure to make proper disclosures can result in quite a bit of legal and financial trouble, so it is always best to ensure that you have made all of the proper disclosures.

While there are some disclosures which vary from one locality to another and it is always best to research the regulations for your own area, there are some regulations regarding disclosures that are common in most areas.

Lead-based Disclosures

This regulation is required by the federal government. To meet this requirement you should know when your property was built and specifically if it was built prior to 1978. In the event that it was, you will need to provide a specific booklet printed by the federal government regarding lead-based paint disclosure and have the tenant(s) sign a disclosure form. The booklet is called Protect your Family from Lead in your Home and it can be obtained from the EPA; Environmental Protection agency.

Hazardous Materials Notice

Be sure to check with your local ordinances to determine whether this notice is required. Essentially, it notifies tenants that a variety of materials were used in the construction and/or improvement of the property which may contain materials that could be hazardous or toxic.

Mold Notification

The subject of mold has become tremendously important in the last few years and is also one that can lead to a great amount of liability for property owners. Check with your local landlord’s association for guidance regarding notification of mold.

In some cases, the addendums which you provide to tenants may not actually have anything to do with potentially harmful elements in the property. In some cases, you simply may need to provide notification to tenants regarding specific rules and regulations which you establish.

One of the most common is a roommate addendum. This type of disclosure notifies tenants that each roommate is jointly liable for anything to do with their rental of the property. This prevents one roommate from skipping out and you facing a situation where the remaining roommate claims he or she is not liable.

A pet addendum is another important disclosure to consider if you are going to allow tenants to have pets in your property. Generally, it is best if you always have a description of the pet which the tenant will be bringing into the property. Perhaps you based your decision on allowing the tenant to have a pet because it seemed to be a mature, calm dog. Six months later; however, you discover that the tenant no longer has the calm dog and has replaced it with a puppy that is chewing up everything in sight. Making sure that you have a description of the pet which will be allowed to be in the property is always a good idea; otherwise, you may have no recourse since you agreed to let the tenant have a ‘pet.’ There is also the matter of exercising caution regarding certain breeds of dogs on the property. If you allow a tenant to have an aggressive breed of dog on the property and someone is bitten, you could be found to be liable.

Along those same lines, you may want to take a few extra steps to protect your property if you decide to allow tenants to have a pet. For example, increase your security deposit, just in case there are problems later on. Also, make a point to check with previous landlords while you are performing the reference check to determine whether the tenant has had a pet in the past and if so, whether there were any problems or damages. Finally, you may also wish to require tenants with pets to provide a copy of their pet’s registration papers as well as their vaccination records.


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Guide to Vacation Rental Properties


While many investors who purchase rental property focus on residences intended for year-around living, there is no denying the fact that vacation rental properties can provide an excellent income revenue. Renting out vacation rental properties; however, can be much different than renting out a regular residence. There are numerous items that prospective vacation renters are looking for; so it is worth it to take the time to ensure that your property measures up.

First, always make sure that the property you consider is in a good location. Most people who consider renting property for their vacation have certain ideas regarding the geographic location that they want. The setting for the property should be relaxing and picturesque. The property should also be quite safe so that renters will know they can enjoy their vacation in peace and security.

Seriously consider a property that is family friendly. There is an extremely large market for family friendly properties which you can tap into. For a property to be family friendly, the furnishings should be able to easily accommodate children. This means that property should be sturdy and should not include a lot of easily breakable items. Ideally, the property should be in a location that will cater to families. Look for properties near pools with lifeguards as well as playgrounds.

Affordable rental prices can also be a great way to ensure that your vacation rental property is booked. A vacation rental property with a reasonable price is always attractive to vacationers because it offers them amenities with which no hotel is able to compete; including privacy, good views, a full kitchen and more space in which to relax.

In addition, take the time to make sure that the property really does feel like home. Kitchens should be well-equipped, furnishings should be comfortable and recreational equipment should be provided.

One of the main reasons that many people choose to rent a vacation home rather than stay in a hotel when they vacation is the fact that they want to enjoy plenty of space. This is especially true for families with children and extended families who vacation together. Assuring that your vacation rental property has a spacious feel to it can help to ensure that your property is attractive to those renters.

Keep in mind that it is becoming more and more popular for vacationers to combine their vacation with some other event such as a wedding or family reunion. If you want to cater to these groups, it is important to make sure that your property can easily host groups. One key feature for these types of rental properties is offering a reception room that can easily serve for different functions.

You might also wish to consider making the vacation property friendly for pets. Many owners are reluctant to do this because of the potential for property destruction. Keep in mind; however, that there is definitely a niche market for vacation rental properties that are pet-friendly. Most hotels do not provide this option, so it gives your property an advantage. If this is appealing to you, make sure the property is safely fenced. Consider installing wood floors instead of carpeting.

To make sure that your vacation property has a wide appeal, set up Internet access. Even while on vacation, most people want to make sure they have Internet access. You can do this using a DSL connection, WIFI or wireless connection.


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Guide to Tax Deductible Expenses


If you own rental property, it is important to make sure that you understand possible deductions in order to improve your profit margin as much as possible. As the owner of rental property, it is always a good idea to consult a tax attorney or tax consultant in order to ensure that you have a good understanding of the items which may be potentially tax deductible. Below is a guide to some of the most common items which are frequently tax deductible for owners of rental property.

One of the most important things which must be understood when you are determining what you may be able to deduct is the difference between improvements and repairs. Many owners of rental property commonly make the mistake of believing that anything they do to their rental property is tax deductible. This is not always the case; however. A repair is essentially anything that you do to the property in order to keep it in good condition. As such, it is often tax deductible for the year in which the repair is paid for. Common examples of repairs would include repairing a broken toilet, painting, replacing faulty light fixtures, etc.

An improvement; however, is something that you do to the property in order to add value to it. As such, it is not usually tax deductible at the time when you pay for them. That said; however, you may be able to recoup the cost of improvements by depreciating the cost over the life expectancy of your property. Common examples of improvements would include adding a garage to the property, a new roof, etc.

Mortgage expenses are often one of the biggest and most common tax deductions you can take when you own rental property. Of course, this is only an option if you have a mortgage on the property. It should be noted that any expenses which you incur in order to obtain the mortgage are not actually deductible at the time you pay for them. Common examples would include appraisals and commissions. Once you begin actually making the mortgage payments; however, you will typically be able to deduct the portion of the payment that is paid toward interest. It is always a good idea to keep very good records; however, you should receive a Form 1098 from your mortgage company that will detail how much you have actually paid in interest for that year.

In some cases, you may incur travel expenses in relation to caring for your rental property. Keep in mind that travel expenses are typically only deductible if they are incurred in order to either maintain your rental property or to collect rent. In the event you had to travel to make improvements to the property, these expenses are not deductible immediately. Instead; however, you may be able to recover the cost as part of depreciating the improvements.

It is important to keep in mind that you usually have two options when it comes to how you can deduct travel expenses. You may choose to deduct the actual expenses or you may choose to take the standard mileage rate.

There are also many other expenses which you may be able to deduct on your taxes. These expenses may include insurance, lawn care, taxes, tax return preparation fees and any losses which result from casualties such as earthquakes, floods, thefts, hurricanes, etc.

If the rental property which you own is a condo or a cooperative, there may be some special rules which will apply. For example, with a condo you may pay assessments or dues which are intended to provide for the care of property which is commonly owned. These areas would include recreational areas, elevators, lobbies and the actual building structure itself. When renting out a condo, you can typically deduct expenses such as repairs, taxes, interest and depreciation; however, you cannot usually deduct any expenses which were spent on improvements. These costs must be depreciated over the life expectancy of the property, just as it would be when you own a single family rental property.

With a cooperative, you may be able to deduct expenses such as maintenance fees. Capital improvements are a different matter; however. You would not typically be able to deduct the cost of improvements and you also would not be able to depreciate the cost. Instead, you would need to add the cost of those improvements to a cost basis in the stock of the corporation. If this situation applies to you, be sure to speak with a tax attorney or tax consultant.

Always make sure that you are prepared to back-up any expenses which you deduct on your taxes. These expenses must be carefully documented and you will need to make sure you provide documentation, including receipts.


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Guide to Showing your Rental Property to Prospective Tenants


In order to succeed when you invest in rental properties it is necessary to show your property to potential tenants. Just as if you were selling the property, you must make sure that the property is appealing to tenants in order to rent it out and begin collecting rental income.

First, it is important to understand that curb appeal can be just as important to tenants as it would be to buyers. Prospective tenants are often put off by properties which seem to be dilapidated on the exterior. In order to attract good tenants, you need to make sure that your property is inviting and shows the care that you have put into it. Even small rental properties can create a good first impression.

Repair issues should always be addressed prior to showing a property to prospective tenants. It is never a good idea to show a property which is still in the process of being repaired or renovated. Wait until the property has been completely fixed up before showing it.

You should also make sure the property is extremely clean. There is nothing worse for making a bad impression on a prospective tenant than a filthy property. Above all, be certain that the carpeting is clean. Ideally, it is best to have the carpet professionally cleaned after one tenant departs and before you show the property to the next prospective tenant. Be sure to allow plenty of time for the carpet to dry before you actually show the property to anyone. Never put off replacing worn carpet as this can cause problems in attracting quality tenants.

Take the time to make sure you know the best points of the property before you show it. Sit down and think about the best features of the property so that you can easily refer to them when you show the property.

Before you actually show the property, take the time to stop by the property to be sure that everyone is set to make a good first impression. If the temperature outside is quite cold or hot, be sure to stop by the property to set the temperature inside the property so that it will be comfortable. Generally, most people will not wish to remain inside a property that is either quite hot or cold. If the temperature is uncomfortable, there is a good chance that most prospective tenants will not stay around long enough to see the best features of the property.

In addition, you will need to make sure that you turn on the lights before you show the property. This is particularly important if you are showing the property at night. If the property is not well lit, prospective tenants may wonder if you are trying to hide something. The few dollars you will spend on having all of the lights on during showings will often translate into a good investment as you are able to attract good quality tenants to your rental property.

Do not hesitate to show off the exterior and the grounds of the property. If there is some interesting feature outside, make sure you show it off. The key is to give prospective tenants an idea of what it is like to actually live there and that includes showing off the grounds as well.

Finally, make sure you are always prepared for all showings. When you show a property, you need to make sure that you have a rental application on hand as well as a copy of the lease you use. You also need to make sure that you have decided on terms such as security deposit amounts, pet deposits and key deposits.


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Guide to Setting Rental Rates


Setting the right rent can be one of the most difficult areas for many people who are investing in rental property. If your property rents out in no time, it could be an indication that you are not charging enough rent. On the other hand, if your property seems to take a long time to rent out, it could be a clear indication that your rent is too high. So, how do you go about setting a rental rate that is in line with the current market?

One of the best places to start is the newspaper. It is imperative that you do some local research to find out what kinds of prices are driving the local market. Location is the most important factor in determining rental rates. For example, a three bedroom, one bath home in one part of town may rent for a $750 a month while another property on the opposite side of town may only be able to draw $500 per month. Most prospective tenants look for convenience when searching for a rental property. They are either looking for a location that is near their work or close to their children’s schools. Neighborhoods that are considered to be trendy or hip can also be a driving factor, as many people like the idea of living in certain neighborhoods.

Of course, the budget of the renter will also play a role in determining how much they are willing to pay and can pay in rent. Due to the fact that most renters have needs that must be filled, especially in terms of space, it is quite common for square footage to also play a role in determining rental rates. This means that larger homes and units will typically be able to rent for rates that are higher than smaller homes and units.

When setting rental rates; however, it is also important to keep in mind that there is a certain point when rental rates can reach a cap. When interest rates are low, if rental rates rise too high, renters will quickly make the connection that it just does not make sense to rent any longer when it could be less expensive to buy a home.

Another way to make sure that you stay updated on rental rates in your local area is to join a local association for landlords. This is a great way to make sure that you keep your finger on the pulse of the local rental market. Emerging trends in the area will affect not only you but also other landlords as well. For example, if your particular area is in an economic slump or even an economic boom then this could have an effect on local rental rates. Make sure you keep track of whether there have been job losses or the creation of new jobs in your local area.

It is also important to keep in mind that basic amenities can also play a role in determining how much rent you can charge for your unit or apartment. Some of the basics expected by most prospective tenants include off-street parking, washer and dryer hookups, dishwashers, etc. If these basic amenities are not available, you may find that you need to either offer something else that would attract prospective tenants or lower your rental rate.


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Guide to Protecting yourself and your Rental Property


Owning rental investment property can be a satisfying and lucrative operation; however, there are also several areas which need to be carefully heeded in order to make sure that you are not sued and do not become liable for any issues which may arise in connection with your property. Learning how to protect yourself is the first step in ensuring that your investment does not actually become a liability.

First, you must always make sure that you have adequate casualty and property insurance as well as liability insurance. These three items are not the same and it should always be remembered that property insurance will not typically protect you in the event someone becomes injured on your property.

Property and casualty insurance will cover you in the event your property suffers from losses resulting from storm, fire or some other catastrophic loss. Liability insurance is intended to protect you if you should be found to be responsible for someone else’s losses. You may also wish to consider carrying flood insurance if your property is in a community that participates in the National Flood Insurance Program. Umbrella insurance, which will provide you with additional liability insurance beyond a general liability insurance policy, is another worthy option you may consider.

You may ask yourself under what circumstances you may need liability insurance. There are many instances in which liability insurance could be helpful. For example, liability insurance could protect you in the event a tenant or an employee becomes injured on your property. Liability insurance can also protect you in the event you are sued for discrimination by tenants.

In the event you hire someone to work on your property, it is a good idea to ensure that all repairmen as well as contractors are able to provide their own certificates of insurance indicating they carry both workers’ compensation as well as liability coverage.

You should also make sure you review your insurance coverage with your insurance agent on a regular basis. Many people make the good intention of taking out adequate insurance coverage; however, they fail to review their policies and when disaster does strike sometime later they are surprised to discover that they did not have sufficient coverage after all.

It is also a good idea to make sure that you have formed good working relationships with critical professionals such as an attorney and a good tax accountant. There are many areas of renting property which are regulated by law. If you are not aware of your obligations under these housing laws, you could find yourself facing legal troubles. Therefore, it is certainly a good idea to consult an attorney to make sure you may not be breaking any fair housing laws. It can be entirely too easy to find yourself in trouble because you unknowingly violated one of these laws. Additionally, make sure you meet with a professional tax accountant at least once per year to discuss your tax obligations regarding your property and revenue.

It is also a good idea to check with your local government to determine whether you are required to have a business license in order to operate a rental property in the local area. While this was rather uncommon at one time, today more and more municipalities are enacting regulations which require a business license for each rental property.

Also, keep in mind that your property insurance policy will not cover the belongings of your renter in the event of damage. It is usually a good idea to make sure you let your tenants know this by putting it in writing. Many landlords not only encourage their tenants to obtain renter’s insurance but also require it.

Finally, take proactive steps to reduce your liability by making sure that your property is safe. Liability insurance is certainly beneficial but the best way to ensure that you steer clear of trouble is to keep your property well maintained.


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Financing Options for Rental Property


Many investors are now finding that rental property can be an excellent way to create wealth. If you are considering getting involved in rental property investing, it is a good idea to educate yourself as much as possible. First, you need to find out what it takes to become qualified to purchase investment property because it is actually somewhat different than becoming qualified to purchase a regular home.

One of the reasons for this is the fact that a significant number of investors either walked away from properties or declared bankruptcy during the early 1990s. While you should certainly not be punished for someone else’s problems, neither do lenders want to be left holding investment properties. Therefore, it is important to understand that the requirements for being approved for a mortgage on rental properties are somewhat different from what you may be accustomed to.

While a home can often be purchased with a minimum down payment, especially if you are a first-time home buyer this is often not the case with rental property. Many lenders require a minimum down payment of 15%.

There are many different sources you can tap into for possible financing. These options include:
•    Mortgage broker
•    Local savings and loan or bank
•    Private lender
•    FHA; Federal Housing Association

Regardless of which option you choose, you will find that most lenders will want to be assured that you will have a sufficient amount of rental income in order to cover not only the mortgage payment but also other expenses such as insurance, taxes and maintenance. Depending on the amount of income that will be provided from the property, some lenders may require a larger down payment.

There are also different types of loans which you can use to finance the purchase of a rental property. One option would be a residential loan. This type of loan can be used to purchase from one to four units. The exact options that are open to you often depend on whether the property will be owner occupied.

Another option would be a commercial loan. This is an option when the property is five units or more or it will be non-owner occupied. Due to the fact that it is a commercial loan, it is often far different from a residential loan in regards to terms and requirements. One of the main differences between a commercial loan and a residential loan is the fact that fees and rates are frequently higher on a commercial loan. A larger down payment is also often required. The down payment on a commercial loan typically runs between 25% and 35%. While there are some lenders who may be willing to agree to a higher loan to value ratio; the requirements for qualifying for such loans are usually more stringent. The lender will also carefully examine the ability of the property to generate a cash flow that will allow you to repay your loan. As a result, the lender will typically examine the property to ensure it can provide an income that will not only allow you to cover the mortgage payments and other expenses but also provide enough of a cash flow that you will have additional income to place into a reserve account.

Private party lending is another option for many prospective investors. One option would be to approach the current owner about seller financing. With this option the owner carries back the loan for a down payment and fair interest rate. You may find that you can save lending fees with the options and may also be able to take advantage of making a smaller down payment.

Another option would be what is known as a hard-money loan. This is a type of short-term financing where a third-party makes a loan to assist the investor with purchasing the property. Generally, this type of loan involves a higher interest rate due to the fact that the buyer has poor credit or because the property is in disrepair and requires extensive renovation.

FHA programs are frequently offered through traditional lenders. Keep in mind; however, that FHS does not actually lend money. They do provide insurance for lenders; offering numerous loan programs.

Regardless of which financing tool you choose, remember that there is always the option to refinance at some later point in order to obtain a better rate and terms.


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