Real Estate Information |
|
Residential Income Property Financing: Part 2 of 3
Welcome to the second segment of a three-part series about income property. In this second segment we will be discussing financing options for residential income properties as well as the upside (and downside) of owning this type of property. Financial Concerns Financing options for residential income property vary widely from commercial or industrial properties. For one thing, most private lenders place size requirements on the apartment complexes they are willing to finance, usually five units or more. Smaller complexes just don't have the revenue generation potential required to make your loan officer feel comfortable. The good news is that residential income property loans usually carry a higher LTV ratio than other property types. If you recall from the first segment of this series, LTV (loan-to-value) ratio indicates the percentage of money your lender will lend you to the property's market value. An 80% LTV is the maximum most lenders will provide for residential income property. Loan terms usually range from 25 to 30 years with a maximum loan amount of up to $3 million. Current competitive interest rates can range from 4.70% up to 6.625% depending on several factors including your credit rating and the size of your down payment. Most loans for residential income property are termed as 'recourse loans'. This means that the lender has 'recourse' to your personal assets in the event you default on the loan. Needless to say, you need to make sure you are ready to assume the financial responsibility of making your payments in a timely fashion. Managerial Challenges Besides financial responsibility, residential income property management brings with it other unique challenges. Likewise, it demands certain skills above and beyond investment savvy and experience. To successfully manage your residential income property, you'll need a good combination of street smarts, interpersonal, and handyman skills. More than any other income property type, residential property will bring you into close contact with those renting or leasing your property. Possibly the most important part is screening those you rent to. Background checks, calls to previous landlords, and searching interviews can save you a lot of headache and money down the road. It's likely that at some point in the tenancy something will break or malfunction. If you have the ability to replace windows or wiring, know how to fix an A/C or refrigerator, or have rudimentary plumbing skills, chances are you will save some money by performing these tasks yourself. Sometimes dealing with tenants can be the hardest part of owning residential income property. How well can you deal with angry, demanding people? Do you stay cool, calm, and collected in tense interpersonal situations? If so, you'll be prepared to deal with some of the issues likely to crop up during your management experience. Conclusion It's important to keep your goals in sight when managing a residential income property. Sometimes it's easy to get bogged down in the day-to-day duties of running the property that you lose sight of making a profit. Know your rights as a landlord; know your bottom line as an investor. As with any investment, having an accurate idea of your time horizon will, to a large extent, dictate the amount of effort and money you should put into your income property. Cameron Brown is an internet marketer specializing in investment property. For more information about residential income property, please visit Security National Capital.
MORE RESOURCES: Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal 'The Hills' Star Whitney Port Renting Out Her Stylish Studio City Pad for $9K a Month Realtor.com News Real-estate agent explains new fees to homebuyers, he's not worried Business Insider Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization New York Post Real estate expert says several factors impact farmland prices brownfieldagnews.com LOCAL REAL ESTATE TODAY 4.19.24 – KQEN News Radio kqennewsradio.com How environmental insurance diligence can shape commercial real estate transactions Insurance Business Top 25 Columbus Residential Real Estate Deals for January 2024 Columbus Monthly Real-Estate Agents, Investment Advisers Chafe at New Anti-Money-Laundering Rules The Wall Street Journal Favourable Signals For Bridgemarq Real Estate Services: Numerous Insiders Acquired Stock Yahoo Finance How Real Estate Helped Taylor Swift Become A Billionaire Yahoo Finance Celina’s first Walmart to be part of bigger vision for fast-growing city - The Dallas Morning News Celina’s first Walmart to be part of bigger vision for fast-growing city The Dallas Morning News Darien and Rowayton Real Estate Report: April 11 to 18 darienite.com Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal SAGE Investment Real Estate Advisors sells 24-unit Bergen County garden-apartment complex ROI-NJ.com Downtime: Pairing wine and real estate RichmondBizSense EG Real Estate: Busy Spring Market – East Greenwich News East Greenwich News Robert Bailey on Real Estate TPG Online Daily Robin Hunden of Hunden Partners honored with Jeffrey D. Fisher Real Estate Legacy Award from Indiana University's ... Daily Herald Oregon Senate strengthens consumer protections in real estate transactions Curry Coastal Pilot SVN|J. Beard Real Estate adds chief investment officer to Houston office – REJournals REjournals.com An investigation into the University's controversial real estate holdings Johns Hopkins News-Letter Inside Chris Pratt and Katherine Schwarzenegger's Real Estate Portfolio Architectural Digest See the latest Coles County real estate transactions Journal Gazette / Times-Courier S.F. housing market: Still very few homes, selling even faster San Francisco Chronicle Tortured Poets or Real Estate Rock Stars? Taylor Swift's Past Boyfriends—and Their Incredible Homes Realtor.com News Two Weichert real estate agents in Willmar recognized for work in 2023 West Central Tribune Real Estate Broker Commission Settlement ClassAction.org Prologis Warns of Slowing Industrial Real-Estate Market The Wall Street Journal Here's What $2.5 Million Buys In Andover Real Estate Andover, MA Patch Real estate brokerage firm Marcus & Millichap arranges $12.8 million sale of Fayetteville, NC mobile home park ... Greater Fayetteville Business Journal Importance of home inspections in Indianapolis real estate WISH TV Indianapolis, IN Navigating the changing role of real estate agents WISH TV Indianapolis, IN Who's Had a Harder Time Buying a Home: You or Your Parents? The New York Times Housing Market Predictions for 2024 & 2025 Remain Subdued Norada Real Estate Investments Meet Samantha: Your A.I. Real Estate Agent of the Future The World Property Journal Solano Real Estate Scene: Homelessness, drug addiction and Theft Reduction Act Fairfield Daily Republic How Alexico's $180 Million Deal With St. Francis College Fell Apart The New York Times Q&A: What should a homebuyer look for in a Realtor? St. Albans Messenger Richland County OH real estate transactions recorded April 5-12, 2024 Mansfield News Journal PICTURES: See Inside Johnny Cash's Spectacular Real Estate Holdings Taste of Country 21 Largest Real Estate Companies in the World Yahoo Finance Real estate transfers GoDanRiver.com CRE Broker Magazine: a New Beacon for Commercial Real Estate Professionals Announced by Massimo Group Markets Insider Quintana Roo announces important investments in Tourism and Real Estate The Yucatan Times Welcome to Real Estate Friday! theberkshireedge.com Owatonna named finalist in state real estate awards Southernminn.com Long-term exclusive property listing contracts now illegal in Arizona The Arizona Republic Toles, Temple & Wright Welcomes David Tucker as Newest Real Estate Agent Northwest Georgia News Chicago-area home sales plunged last month Crain's Chicago Business China’s real estate investments decreased by 9.5% y/y in Q1 GMK Center | English Navigating real estate market corrections RealtyBizNews Real estate transactions: Week of April, 2024 | Construction / Real Estate | insidetucsonbusiness.com Inside Tucson Business China home prices slumped in March as property crisis drags on Business Insider Parrot Realty Breaks Down the $418 Million NAR Settlement: Dispelling Myths and Forecasting the Future of Real ... Parkland Talk |
RELATED ARTICLES
How to Find and Buy a Bargain House with Little or No-Money Down Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly. Real Estate Inspection - Do Your Own Why should you do your own real estate inspection? To get a better deal. It isn't necessary to learn building codes, and you probably should use a professional inspector in any case. 3 Tips to Help You Sell Your Timeshare - For More The values of timeshares are constantly changing. There are numerous timeshare-selling companies arriving every day. San Antonio Texas Real Estate The San Antonio, Texas real estate market is still going strong even after several years of growth.San Antonio ranks as one of the most affordable cities in the nation to purchase a new home. How to Use the Internet to Help Your Apartment or House Hunting So you are looking for an apartment to rent or a house to purchase. One of the most important steps is researching the neighborhood to decide if you really like to live in that area. Evil Gains Entry When we open our doors to strangers, we can never be certain what malice an outsider might bring in. Police officers tell us to keep our doors locked with good reason. How to Become a Successful Real Estate Investor Many folks dream of becoming real estate investors, but not everyone has what it takes. If you're dreaming of becoming an investor, here are several important questions to consider, long before you buy your first investment property:1) Why would a homeowner sell a house at a bargain price?Many things happen in people's lives that make their home suddenly become a burden. A Few Easy Ways To Take The Headache Out Of Moving Moving from one house to another is always a challenge, but it doesn't have to be a nightmare. Here are some simple tips on how to get it done with minimal stress and strain. Real Estate: Buyers Agent, Sellers Agent & Dual Agent (defined and explained) There is a relatively new and not always well understood practice in Real Estate sales; it is called Buyer Agency or Buyer's Agent. Until recently Realtors and agents usually represented the seller, in opposition to the buyer, during the real estate transaction. Seven Tips in Choosing Maui Income Properties Aloha! If you are interested in choosing a Maui incomeproperty, then there are some details that you should know.You might be a bit intimidated by the whole process ofbuying a home. Practical Advice for Finding Irish Castles for Sale Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years. Finding A Capable Agent To Meet Your Real Estate Needs Whether you're a first-time buyer, selling your current home or relocating to a different part of the country, the support of a qualified, knowledgeable real estate agent can alleviate many of your concerns and ensure a smooth transaction. A professional agent can market your present residence, help you locate the home of your dreams and assist in making your transfer to an unfamiliar area easier. Safe, Scenic & Secure Sussex County Delaware As I write this, there is a considerable concern about the dangers of urban life, triggered by the terrorist attacks on the USA. As some of you know, I have been a student of disaster preparations and a real estate consultant for those seeking "secluded and survival properties" for over thirty years. Preparing To Make A Zero Down Offer I'm going to focus on the Seller of a hypothetical property you have found and the offer that you are going to make. You want to write it so it has a reasonable chance of being accepted. Why Real Estate? Five months ago I was faced with a decision to keep doing the same thing that I loved or go and try something different and change my life for the better. Well would you like to know what happened?Maybe next time. Real Estate Investing Produces Extraordinary Profits Imagine making $5000 a year from real estate investing without recognizing you are real estate investing!Real estate values are so dynamic. The marketplace is always fluid and changing. Real Estate Investing: Beware of Subject To Promises Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages. Curb Appeal First, lets start with what it is. Curb appeal is quite simply the rate of attractiveness your home projects to viewers from the street. FSBO: For Sale By Owners Chapter Two Sheriff's Deputy Ted Rasmussen was thinking about Carrie-his pregnant waitress problem-when he sighted the traffic disruption meandering near the yellow line on Bay Street. A Bremerton merchant had called the Sheriff's emergency number reporting a wet morning commuter mess. Home Hunting and the Internet So, it's home hunting time. Where do you start? Who do you contact? Well, home hunting has been made much easier with the advent of the Internet. |
home | site map |
© 2006 TIGER MEDIA |