Building Wealth With Rental Properties
For your clients who are looking to accumulate wealth, purchasing and managing rental properties may be an excellent way to accomplish this.
Mortgage Financing for a Rental Property
Consumers may be concerned about how they can finance an investment property. They often worry that in order to take out a mortgage for a rental that they will have to make a very large down payment, pay high rates, or deal with restrictive terms.
While a variety of lending programs work for both primary residences and rental properties, there are also some tailored specifically for investments. Simple Access® Non-QM Investor Cash Flow is a top choice because qualification focuses primarily on the expected income that a rental property will generate rather than the financial situation of the buyer.
Finding an Investment Property to Rent
Once the financing decisions are made your clients may be thinking about how to find that first rental home.
Here are key factors they may want consider when house hunting for a rental property:
- Neighborhood. Where you buy will determine who lives there, from students in university towns to professionals in metropolitan areas.
- Property taxes. An inquiry with the assessment office of a municipality can give you an idea of the property taxes to expect.
- Crime. It’s a good idea to check out the crime statistics for any area in which you intend to buy.
- Vacancies and average rents. To understand the rental landscape, look to see if the neighborhood has a high number of vacancies, and what the rents of these listings are.
It Helps to be Handy
Owning an investment property isn’t just about reaping profits through rent; toilets will clog, roofs will leak, and water heaters will need repairs. Although one doesn’t need to be a master craftsman, it can be helpful for your clients who want to become landlords to be a little handy, with the skills and time required to handle the basic upkeep of a property. If they can’t so much as hammer a nail, or don’t have the time, you may want to recommend they look into working with a property management company who can help in this area.
Get Started with Would Be Investors
Would you like to learn more about our products that work well for rental properties? Contact us now to get approved or with any questions.