1. |
Try to concentrate your search on less expensive properties. These are easier to rent at a profit than higher priced homes. |
2. |
Try to locate a property that is in the best condition possible. Try to avoid a property that would require more than normal upkeep because unexpected or out of the ordinary repairs will have an adverse effect on your bottom line. |
3. |
Obtain a loan with the lowest interest rate possible. |
4. |
Check out "Pay Option"loan programs also known as cash flow loans. These programs allow you to set up an optional minimum payment which will give you a very low monthly payment usually for the first 5 years. During the 5 years your minimum payment will increase by a very small amount each year. |
5. |
Be certain to investigate "Interest Only" loan programs. These monthly payments will also be lower than fully amortized payments. You typically can pay down a portion of the principal each year if you so choose. |
6. |
Find a good tenant or determine if you will avail yourself the services of a professional property manager. If you do use a property manager, keep the expense in the neighborhood of 7% of gross rent. |
7. |
Have a cash flow analysis performed which will offer you a 5 to 10
year financial snapshot of all anticipated income and expenses.
Fax or E-mail the following information to Peter at Clarion Mortgage Capital for your customized cash flow analysis. This several page detailed report will show you absolutely every aspect of your prospective investment property. Fax to Peter at 925-855-9770 or E-mail to Peteru@Clarionmortgage.com.
A) Property location
B) Cost of property
C) Amount of down payment
D) Your anticipated monthly rental income
E) Your estimated tax rate (28%, 33%, 35%) |
The report you receive will have more than one loan scenario included. This will allow you to better decide on the type of loan you desire. The report will also include a current rental income model based on market and neighborhood real time data. Fax or E-mail the above information and determine how you would like to receive the report. Please be sure to include your Fax # or E-mail address where you wish to have your report sent.
