Have you ever dreamt about investing in single-family Fort Oglethorpe rental homes, but don’t have the money to do so? That’s not unusual. But, there are many different ways to invest in rental real estate, even if you are a bit short on funds. You can still fund an investment property even if you don’t have all the cash. You just need to look for other ways to get that money. Read along and you might find an approach that allows you to own rental real estate, even when you don’t have all the cash ready.
Buy a Primary Residence
This may come off as elementary, but it makes sense to buy your own house first, prior to investing in a rental property. Unlike loans for investment properties, there are many different programs designed to help first-time or other homebuyers purchase a home. Down payment requirements tend to be lower, and interest rates are often much more favorable for owner-occupied properties. A lot of rental property owners started living in their own houses until, eventually, they flipped it into a rental. This is actually an excellent way to start yourself off on your investment portfolio.
Buy a Duplex
Buying a duplex would also be another great way to start. The wisdom behind going for a duplex is that you can avail of the same programs offered to owner-occupied properties, and you can rent out the other unit. The drawback, obviously, is that you have to share your own home with a renter. But the upside is that you will be collecting rent that may nearly cover your mortgage payment, reducing your living expenses and allowing you to save up for your next investment purchase.
Open a HELOC
If sharing a home with a renter doesn’t quite fit your needs, then you can go for a home equity line of credit (HELOC) on your residential property. It’s likely that your property values will grow and your property will build equity. That amount can be borrowed in a line of credit, and you can use that to purchase an investment property. Generally, lenders will not go beyond 80% of your home’s value, so it’s best to keep an eye on your property values and keep track of how much equity has actually been built up.
Reduce Closing Costs
So you have your down payment on hand. But, what about other expenses like closing costs? If you don’t have the budget for that, you can try to ask your seller or lender to cover for you. You might land yourself a lender who will offer you a rebate to try and help get the cash needed to a minimum for closing. If you’re lucky, the seller just might be willing to cover the closing costs to seal the deal.
If you really put your mind to it, the possibility of owning a portfolio of single-family rental homes is truly within reach. Our professional Fort Oglethorpe property managers can help! We work with rental property investors, from beginning to experienced, to help assess prospective rental properties, locate off-market deals, and offer expert advice on everything from rental rates to marketing (and beyond). Contact us online to learn more.
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