planning on buying my first property to rent out need some advice

planning on buying my first property to rent out need some advice

Farmingdale, NY · Member since 2017 · 17 posts · 2 votes

Hey guys found a property out of state that i really want to purchase and rent out using a property management company. I see mixed reviews on renting out of state or further than "45 mins" from your home, but i live in one of the most expensive areas for real estate long island New York. With todays technology i can see it being alot easier to manage properties remotely and i've listened to podcasts on here about people doing it. I've done research on the property management company and they have great reviews and aren't that expensive. The property is listed at 84,500 i'm sure i can get it for cheaper maybe 80k or lower. I have 20 percent or more to put down if needed. I also researched the numbers for rent and the cash flow would be awesome. Properties in the same area/same amount of beds/baths/square footage are renting out from 850-1150. Even if i only got 700 the numbers would still be good. Now my questions are, where is the best place to get a mortgage? i use chase bank for all my banking but i have heard there are better places to get mortgages, any advice would be awesome. If i'm missing anything or if i should not be looking this route let me know i love constructive criticism! Thanks guys

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  • Real Estate Agent · Fort Mill, SC · Member since 2014 · 63 posts · 38 votes
    9y

    @MIke Scutellaro If you are planning on buying more properties in the same area, I would recommend going to a local bank or credit union. Create a relationship with one of these banks and later on when your financing might not conform to Fannie/Freddie guidelines they still may be able to provide lending products for you. 

    A realtor should be able to get you in touch with someone local. 

    Best of luck!

  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    9y

    @MIke Scutellaro your asking the magical question that a lot of investors have: who's the best?  Investment loans are higher risk so a lot of banks will stay away from them or place extra rules (called overlays) to limit their risk on them.  You will need to interview a few banks to find out which ones are best for you.  If you are working with a realtor in the market that this property is in it would be a good idea to ask him/her who is a good bank locally.  I would also suggest making a separate post with the subject line of "Looking for bank in XXX" and that should get you some more specific responses for that area.  Hope this helps!

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