Buying Your First Rental Property

Real estate investing can be a daunting prospect. However, with preparation and planning it can be a great way to diversify your portfolio and add a means of passive income. If you think you might be ready to take the plunge, here are some simple tips to help you get started.

Down Payment

Perhaps the biggest hurdle when it comes to investment properties is securing financing. Many lenders require you to put at least twenty percent down. However, if you can put more down, you may qualify for even better rates. If the point of investing in real estate is to have a source of cash flow, have a low interest rate is key.

Credit Score

Aside from a large down payment, there are other ways to secure a good loan on your investment. With time on your side you can do so very easily by steadily improving your credit score if it is not already good. Lenders will be able to provide you with the best interest rates if they can see that you are a low risk borrower.

Shop Around

Finding a good loan is just like shopping for a new car. Don't buy the first one you see. You will want to do your due diligence and compare rates from various lenders. Additionally, don't just shop rates of the big banks. Try to find a local lender. They often are able to accommodate special circumstances much more so than a large bank and sometimes the service they provide is much better.If you are interested in buying or selling a property in the Costa Mesa area, Contact Torelli Realty.