With everything, you’ll have to learn as you get started, investing in real estate can seem overwhelming. However, when you buy a multifamily home to use as rental income, you can get a more gradual start in real estate investing. You’ll have more opportunities to learn what it takes to become a successful landlord with real practical experience.
Get Better Loan Terms
When you apply for a loan to buy real estate that you’ll use strictly for investment purposes, you won’t qualify for certain mortgage programs. The best terms you can hope to obtain in this situation are a 25% down payment with a 20-year term. You’ll also pay interest that’s at least 2% higher than the rate applied to homebuyers.
When you agree to live in the property, you can qualify for down payments as low as 5% and get a 30-year mortgage. You’ll also qualify for lower interest rates.
Keep Up with Property Maintenance
While you don’t have to live in the property to keep up with its maintenance, doing so makes property management easier and more convenient. You’ll see firsthand what issues need your attention.
Even if you use professional property management services, your on-site presence will help you get problems resolved faster. Otherwise, neglected issues could worsen and cost you more in future repairs.
Save on Your Own Living Expenses
Living in your own rental property will also allow you to save on living expenses since you won’t have an additional rent or mortgage payment. This will give you the time to build up your savings.
Later, you can buy a home for your own use or invest in more rental properties. This is a good way to build up a better foundation for your future financial security.
Get Help from an Established Property Manager
Reliable Property Management has been helping property owners manage their rental properties for years. You can learn about the specific services we offer by contacting us online or calling (443) 869-3799.