Purchasing my first home and plan to use it as a rental.
Hey guys, I'm fairly new to this forum but have found numerous good examples of rental suggestions and such. But let me give you my background. I just turned 20 years old, don't have a large down payment (Can get maybe 5 grand in a couple months, More when tax season hits), I have a full time job and a full time student.
My goal is to buy a first time house and use it as a rental to generate some extra income and hopefully buy more and go down that long chain of events. I was looking to put as little down as I possibly could, which I now realize is becoming impossible because it seem the lowest down is 20% for investment properties.
My first question is how do people obtain private loans, and would I be eligible for one?
My next question is if I purchase a $50,000 house in Raleigh, NC and plan on renting it out, well Zillow says my mortgage, insurance and property taxes would roughly be able $350 for a 15 year mortgage and estimated rent would be about $850 in that specific areas and generally rent is largely inflated around this area. Is this a realistic spread? I mean $500 a month profit is huge. I know you include 50% of this as matainance, but still $250 a month seems too good to be true to me.
I know my questions are a little vague, I’m still searching for some guidance along the way. I'm not worried about the approval, my credit is 700+, and however I am really interested in the lowest down possible.