I am in the process of buying my first rental property. I have few question that needs your help.
How to find a good budget contractor and good lender in Atlanta area. Any suggestion?
Which loan is better standard mortgage loan or Home Equity loan?
I have excellent credit and stable job. Should I go with big bank or lender?
How much should I pay for a property management?
Also please let me know any tips and advise
Thank you for your advise
-Whenever I need to find quality workers, I use Thumbtack .com. YOu post the job you need (bathroom remodel, instal a fence,...) and contractors submit bids to you. They pay a membership to be on there, so only the ones that are investing in their business are on it.
-Go with a standard mortgage
-Go with a mortgage broker. They will find you the best deal since they work with BOTH big banks and smaller lenders.
-Property management typically runs 8-10% of collected rents.
-Final tips: Take action. You can spend all day analyzing and looking for deals, but especially when starting out, if you find something that meets your criteria and will help you make money, just go for it.
Thank you for your suggestion. Any suggestion on where I can find good mortgage broker? I will use the standard loan. I just run my credit in one of the banks and the rate is really high for investment loan almost 5% even though I have excellent credit. Is the normal rate?
@Angeline Lee , interest rates for investment properties are always higher than primary residence. I just got quote for the one I made an offer on and it is 5.38% APR. Smaller or community bank will probably give you lowered rate but mortgage broker is a way to go. If you can manage your first rental yourself then I will strongly recommend it as it will provide you lots of learning. Typically for one rental, PM rate will run around 8-10%. You shouldn't need lots of support if you property rehab/renovate the house. Go in with a set budget and make that budget NOT on the wish list but practicality and tenant comfort. Your goal is to provide quality rental and not luxury rental ;) Good Luck and now take a leap!
@Angeline Lee - Congrats on taking the plunge and getting into your first deal. Feel free to reach out to me. I'd be glad to share any resources or connections.