Get as much scoop you can about the area you aspire to invest in. Look for key features of the area that might attract residents, like parks, shopping, proximity to public transit or beaches or attractions or a nice view. Also check about the tax laws and mortgage rates to give you a reliable estimate as to how much you need to allow for your future investment as well as monies expected as down payment and mortgage costs for buying your first rental in Coeur d’Alene.
There are many options you can put to use when financing. Rental property loans or finance options might be different from those attainable of owner-occupied home mortgages. Listed below are some options available to you:
Cash – use cash to buy a rental home
Mortgage – pay a down payment and then monthly mortgage payments
Note: there are many types of mortgages, do your homework to ensure the loan fits your budget and needs
Portfolio lenders – access an adapted portfolio of mortgages available with flexible terms specific to property owners
Federal Housing Administration (FHA) loans – While FHA loans are designed for those who are planning to live on the property, there are some options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4). Using FHA, you could live on the property and have a rental property unit.
203K loans – this loan factors in the cost of home repairs and improvements into the loan amount. For those homes that are fixer uppers or you just want increase your rent value.