Research
Finance
There are many various types of alternatives you can employ when looking to finance, rental property loans or finance options might be different from those convenient to owner-occupied home mortgages. Here are some different types of financing options you might consider:
- Cash—use cash to buy a rental home
- Mortgage—pay a down payment and then monthly mortgage payments
Note: there are many types of mortgages, do your homework to ensure the loan fits your budget and needs - Portfolio lenders—access an adapted portfolio of mortgages available with flexible terms specific to property owners
- Federal Housing Administration (FHA) loans—While FHA loans are designed for who are planning to live on the property, there are some options available with FHA that allow FHA-financed homes to have more than 1 unit (up to 4). Using FHA, you could live on the property and have a rental property unit.
- 203K loans—this loan factors in the cost of home repairs and improvements into the loan amount. This can be useful when looking to renovate a property and rent it out.
Find a Property
Ally with a local real estate agent to look up where there are properties available in your planned area. Have a general idea of the specifications of the home and how much you are willing to spend. Make sure to have limits and expectations when finding a property. If you find the right purchasing point, you can determine your long-term profitability.
Property Assessment
Would you like a free assessment of your potential rental property in Clinton Township? Please contact Real Property Management Metro Detroit today by filling out the form online or calling us directly at 248-808-6550.