Don’t Wait To Buy Real Estate, Buy Real Estate And Wait
Just about everyone has thought of it but few have the guts to pull the trigger. However owning an investment property, in our opinion, is a fantastic low risk long-term investment and always will be. As the old saying goes “Don’t wait to buy Real Estate, Buy Real Estate and wait”. So, how does a regular everyday person like you or I break into this world? Well, you really only need one thing….Money. It’s getting the money that’s the trick. Here’s the “Coles Notes” of what’s required to qualify for a mortgage on your first Investment Property:
- Down Payment: As a rule of thumb, you’ll need to have a minimum of 20% down. It’s best if this comes from your own savings however in some cases this can be taken from a line of credit or even be given to you as a gift from an immediate relative. Have lots of equity in your existing home? Lets refinance and use your equity for the down payment.
- Income: You’ll need to earn enough income from your job to be able to cover the costs of your current home/debts/property taxes as well as the same for your new investment property. If the property is already tenanted we can typically use 50% – 80% of the rental income to bump up your current income and help with qualifying.
There are various other factors that will need to be taken into consideration such as your credit score, type of employment, the type of investment property you’re purchasing and if it’s zoning complies with it’s use etc. These factors and their resulting requirements can vary greatly and are best discussed on a case by case basis. Owning income producing Real Estate comes with a great number of benefits and if you’re looking to get to that next level we’re here to make it a reality. Give us a call 289-337-4029.