Taking that leap and buying your first rental property can see, daunting. Here’s how you can use rental property loans in Arizona to make it easier.
For first timers, making a rental property purchase is a major deal. It’s a lot of money, a huge risk and a ton of work. You need to make sure you do your due diligence in finding a property that’s in good shape, in a good neighborhood and represents a good deal. On top of all that, you’ve got to figure out a reasonable way to pay for it.
Many people decide to turn to the bank to get a loan on a NOO (non-owner occupied) property. This is one way to do it and it’s a solid way, especially if you have great credit, good income and no bankruptcies or foreclosures on your record. It’s also a good route if you can afford to wait; banks can take over a month to get you your money.
There are other options aside from the bank. Private investors will often offer Arizona rental property loans to people who want to get into the “game.” It’s a fair exchange — you get the upfront money for an investment property, plus monthly or short-term rent, the investor collects interest and fees. These private investors can be tracked down with great effort, or you can go to a broker who connects landlords with private investors.
Either way you go, there’s one trick you can use to dip your toes in the rental game without jumping in the deep end.
Here’s one trick many people don’t think about — living in the rental property for 12 months. This offers a range of advantages:
● You can find and fix any problems you find on the property.
● You might be able to qualify for an Arizona owner occupied loan, which usually means better rates and terms.
● You won’t have to make two mortgage payments.
● You’ll be there to watch over the property as other people live there (especially true with a mother-in-law, basement apartment or guest house).
Right now is a fantastic time to get into the rental property business. If a recession does come, having a place to live and a place to rent (as more people become renters), is an ideal situation. If you’ve decided to give it a try, done your due diligence and found some properties, give us a call at Level 4 Funding to see about a quote for a Arizona rental property loan.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.