Investing in a rental property is a great way to earn a passive income, but there are a number of costs associated with buying and managing rental properties that should be included when you calculate your returns. We spoke with industry experts who shared the most important rental property expenses landlords can’t afford to ignore….
Jumbo Loan: Rates, Limits, & Requirements
A jumbo loan is a mortgage that has a maximum loan amount above the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In 2018, the jumbo mortgage limit for single family homes is any mortgage above $453,100 in most counties, but it can reach as high as $679,650 in others. If you’re…
26 Expert Tips for Buying Multifamily Real Estate
A multifamily real estate property is a great investment because you can rent it out to generate income or sell it as a fix-and-flip to earn an immediate profit. However, multifamily real estate can be risky if you don’t know what you’re doing. Follow the tips from industry experts below to minimize your risk. Below…
Interest Only Mortgages: Rates, Qualifications & Providers
An interest only mortgage features monthly payments that only cover the interest and don’t include repayment of the principal loan amount. The principal is refinanced or repaid by the end of the term. Many real estate investors like interest only mortgages because they have very low monthly payments despite having mortgages rates between 6 –…
Delayed Financing Rates, Qualifications, & Lenders
Delayed financing is a strategy in which an investor purchases a property all cash and then quickly takes out a loan on the property to get their cash back. Generally, the lender will lend up to 75 percent LTV and rates start at five percent. Delayed financing allows you to compete with all-cash buyers and…
Mortgage Cash Out Refinance Calculator
Generally, you need a minimum of 30 percent to 40 percent equity in the property to qualify for a cash out refinance. A mortgage cash out refinance calculator helps determine if you have enough equity in your home to qualify based on the information you input into the calculator, including things like your home value…
How to Start Your Own House Flipping Business in 6 Steps
Getting started in your own house flipping business involves six steps, the first of which begins with a solid business plan. The next steps in the process include finding the right professionals, forming a holding company, obtaining financing and identifying great properties. The final step is marketing and selling your flips for a profit. Having…
How Much You Should Charge for Rent
The monthly rent you should charge is usually calculated as a percentage of your property’s value. An aggressive rule of thumb says rent should be about 1% of the property’s value, although a more realistic range is between 0.5% to 0.8%, dependent on your location and amenities. This formula is used for long-term rentals. To…
3 Types of Apartment Loans: Rates, Terms & Qualifications
Apartment loans can be short-term or permanent loans that fund the purchase and/or renovation of an apartment building with rates from 5 percent to 12 percent. Investors typically use apartment building financing to purchase properties with more than five units that can generate cash flow, build equity, increase leverage, or earn capital gains. If you’re…
Rental Property Insurance: Providers, Costs & Coverage
Rental property insurance protects landlords against liabilities caused by tenants, other perils caused by weather damage and other potential losses like crime. Most national insurance providers offer rental property insurance to help protect your rental income. Typically, an average policy on a $200,000 rental property costs $1,473 to $1,596 per year. Rental Property Insurance Providers…
Buying a Multifamily Home Investment Property in 6 Steps
Buying a multifamily home of two or more units is different than buying a single-family home because it’s an investment and you need a loan specifically designed for a multifamily property. Buying a multifamily home takes six steps, such as researching the neighborhood and choosing your lender, and the entire process can be completed in…
Cash-out Refinance for Investors: Rates, Terms & Lenders
A cash-out refinance occurs when investors take out a new loan on an existing property to extract equity from that property. Cash-out refinances happen when investors refinance for more than the current mortgage and receive the difference in cash. Cash-out refinances require at least 30 percent to 40 percent equity and have rates around 3.25 percent….