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re: Rental properties. How to start
Posted on 6/18/22 at 4:06 pm to geauxnc0308
Posted on 6/18/22 at 4:06 pm to geauxnc0308
Just coming back into this thread.
The best way to protect yourself on future real estate investments:
1. Never be higher than 80% LTV. This is purchase price, closing costs, & repairs.
2. Your income (rent) should be 25% income over expenses (mortgage, insurance, taxes).
3. Find a local bank that will only require 10% down (MC Bank) and some others that require no money down (I can’t disclose, ha). This will help you keep cash on you for unexpected expenses.
Hope this helps.
The best way to protect yourself on future real estate investments:
1. Never be higher than 80% LTV. This is purchase price, closing costs, & repairs.
2. Your income (rent) should be 25% income over expenses (mortgage, insurance, taxes).
3. Find a local bank that will only require 10% down (MC Bank) and some others that require no money down (I can’t disclose, ha). This will help you keep cash on you for unexpected expenses.
Hope this helps.
This post was edited on 6/18/22 at 4:07 pm
1
Posted on 6/18/22 at 7:17 pm to LSUTigers00884
quote:
3. Find a local bank that will only require 10% down (MC Bank) and some others that require no money down (I can’t disclose, ha). This will help you keep cash on you for unexpected expenses.
if he buys right to start with he will have cash from the positive cash flow plus his reserves to begin with even with a normal DP. you have no idea if him putting too low a DP will kill the PCF or make it too little and not worth the deal. that means he has a HIGHER NOTE. THE MORE HE FINANCES. he has to run numbers. He also does not need to be over leveraged. i have to have a certain PCF based on certain price points. E.G. him buying a 100k property with only 100 a month PCF is beyond stupid.
once he gets to 5 properties or more traditional lenders want not just 20% but 25% down plus 6 months reserves.
I doubt your local banks finance nationwide where the best deals are. he has to go where the deals are.
This post was edited on 6/18/22 at 7:22 pm
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