Im starting with buying my first investment property in Baltimore, MD. I was going to go the house flipping route but decided I did not want to do the rehab loan process.
So what I want to do is buy a single family residence home and rent it out but I'm not sure on my financing options. An FHA loan requirements will not allow me to rent out the property immediately so I want to know the best options as far as down payment options and loan types.
The homes I am interested in range from 50k-75k. I want to put anywhere between 3-7 percent down. Is this possible?
Have you tried working with private money lenders?? Possibly other investors in the area who would like to help and get a piece in of a good deal??
Generally you are not going to get a 3-7% down loan with traditional lenders for an investment property. Lenders are going to expect more like 20-25% down. What most do is put the money down then try to refinance out later when the loan can be based on the appraised value, not just the purchase price.
Other options are private lenders; friends and family, or hard money lenders. hard money lenders specialize in loan to investors but at much higher rates than traditional lenders like an FHA loan
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