Rental Income Property Action Plan

Our team takes a look at your financial picture and determines the amount of available equity in your current home.  We’ll need a copy of your current mortgage statement to make that happen.

From there, we help you determine what will make the best type of income property for you so you can start looking.

No, your mortgage will be based on the projected rental income provided by an appraiser, so no need to put the tenant before the property.  In fact, most often you want to avoid purchasing a property that comes with a built-in tenant, as you can never be completely sure if the current landlords have done a great job of screening the tenant.

If you’re not going to live in the property yourself, the required down payment is 20%.

If you’re buying a duplex and you are occupying one of the units as your principal residence, then your down payment is only 5%.

For a multiplex dwelling of 3-4 units, one of which is occupied by you, the owner, the minimum down payment is 10%.  All projected rental income counts toward qualifying income on your mortgage application.

For most rental properties, lenders charge an interest premium of 0.25% - .035%.  This is to compensate for the increased exposure they take on in the event of any sort of life hardship that affects your ability to pay.

To make this easier to manage, our team can extend your amortization as far out as 30 years.