Short Term Rental Riches 2. How Much Money Does it Take to Invest?
Nov 19, 2019
Discover the ins and outs of financing your short-term rental investments. Learn what lenders prioritize and the unique challenges faced compared to traditional loans. Explore financing options tailored for first-time buyers and how to leverage low interest rates to your advantage. Uncover alternative methods like owner financing and partnerships to expand your investment opportunities. Plus, get insights on identifying ideal markets for these profitable rentals.
AI Snips
Chapters
Transcript
Episode notes
Use Financing with Local Lenders
- Financing investment properties typically requires 20 to 25% down payment.
- Consider local lenders for more flexibility and quicker loan processing than big banks.
FHA Loan for Duplex Investment
- Use an FHA loan to buy a duplex with as little as 3.5% down if you live in the property.
- Ask the seller to cover closing costs to reduce upfront cash needed.
Invest Where It Makes Sense
- Invest in markets with affordable properties and better returns, even if you live in high-cost areas.
- Avoid buying in expensive markets just because you live there; live where you want, invest where it makes sense.