I currently reside in the Atlanta area and I am wanting to buy my mother’s home now so I can use it as a rental property because she is moving. The homes in that area rent for 20% above market so there is profit to be made passively. What is the best way to fund this? I have looked at home loans from banks that i qualify for. I only know real estate from a hole buyer perspective. I merely want to find financing and get it in my name. Would I need lawyers, inspectors etc....What would be the best route to go about this?
@James Richburg , you can fund this through a bank. Expect 25% down, slightly higher rates, and shorter terms. Shop around to find the product that best suits your needs. Start with your local/regional banks and credit unions.
Since you're new to Real Estate Investing (REI), I strongly recommend posting all of the details here. The community will be happy to double-check your numbers and offer suggestions. Not all homes make good rentals. In fact, most don't.
Yes, you will need lawyers, inspectors, etc. You'll be able to eliminate the need for agents, but everything else will be required, especially if you're getting financing.
Thank you Jaysen this information is very helpful. I will continue to post and ask questions as I am going through the process. What kind of properties make for a good rental? Would it be good to finance enough to cover any renovations or just use my own cash for that?
If she owns or has majority equity in the home, would she be open to seller financing? You would minimize your out of pocket expenses up front. Many ways you can structure that type of loan.
Seller financing has always interested me and I hope to utilize it at some point in my investing.