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Updated over 11 years ago on . Most recent reply
?Do you purchase a rental property the same way you purchase a home for yourself?
Do you purchase a rental property the same way you purchase a home for yourself? For example:
Rental property is $50,000
I have the down payment but will need to borrow money from a lender to pay the property.
Say all goes well, would I used the income from my tenants to pay off my rental property's mortgage? Or is there other ways of going about paying it off? (OR do I have to get a mortgage for a rental property at all?)
Most Popular Reply
@Account Closed Simple answer is "NO".
When you buy a home for yourself, you mostly look for school district, neighborhood, amenities, etc.
When you buy a home for income, you criteria changes to basically cash flow (appreciation for certain areas).
Typically your rent should cover everything like PITI, repair and maintenance, etc and your tenant pays for utilities.
Read @Brandon Turner beginner's ultimate guide to real estate investing. This guy is awesome and great individual. You will learn a lot from him as I have.
Good luck,
Hope it helps.