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What should I have lined up before consider purchasing investment properties?
By Tom | November 19, 2006
uwilltap1029 asked:
I’m 22 and looking to purchase my first investment property. I’d like to purchase a quadplex. What should I have lined financially personally and for the purchase itself before I decide? What are the downsides to this investment and is it extremely risky? What should I consider? Thank you
Tommy
Topics: investment properties | 1 Comment »
November 22nd, 2006 at 8:37 am
You have to qualify for financing. Most Lenders want to see that you have some experience with multi unit housing before they will lend to you. You need more cash for this kind of investment than you do for a conventional mortgage. So, you will need a large down payment, insurance, and be able to carry the mortgage even if you don’t have a renter. Also, you have to be able to make repairs. So, you need $$ for that, too. Start by talking to a Lender to see what you will need to qualify. They may tell you to start with a duplex. Good luck.