Introduction l. New in the real estate business

[Mitchel Eze]

New investor here. I know for sure that rental property is the move for me. Any tips on financing options? I have decent down payment money but my kind of job is lnt consistent enough for a typical bank mortgage. 

[Brian Cauldwell]

Quote from @Mitchel Eze:

Please explain the PPP part in details of you don't mind. I'm a newbie and new terminology keeps popping up. Thanks 

also is there a way to get help with down payment on dcsr loans ?

would be it be safe to assume to more units is better or is there advantages to starting small like single family. 

PPP or Prepayment penalty is a fee for selling or refinancing the property during that time frame. Standard is a 5 year prepay, and it gets better every year. 5% fee in the first year, 4% in the second year, 3% in the third year, 2% in the fourth year, and 1% in the 5th year. 

The fee/percentage is based on the loan amount. $100,000 loan, sell or refinance in the first year your fee is $5,000. 

It is important to note that this is typically only for long-term loans and there are ways around it. Most lenders have a shorter prepay option, or no prepay. Usually, an added fee or higher interest rate to get that option. A lot of my clients will take the higher rate for more flexibility. 

As far as advantages for an SFH, you only have to deal with one tenant and there are more exit strategies. Typically 2-4 unit properties are primarily bought by investors, so if you need to sell the property you are missing half the market.