First time Buying a Rental Property
Hey Guys, I am a licensed 20 year old Realtor in Arizona and Nevada currently going to school as well.
I am looking to get into buying my first rental property with my dad as a co-signer. Do you have any tips on the best way to go about this? FHA non occupant co-signer loan? And would you just buy a single family home to get started? New to the investing game and looking for your guys advice! Thank you in advance.
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@Tyler Smerz - If you can qualify for a conventional loan and can afford the extra 1.5% down payment, I'd recommend going that route over FHA so that you can save yourself some money on the Mortgage insurance cost. You will still have to pay MI on a conventional loan, but the cost will be quite a bit less, and won't be tacked on through the life of the loan, you would only pay it until you reach 20% equity in the home (about 8 years on a 30 year loan).
If you can swing the down payment on a duplex (15% down) or 3-4 unit (25% down), then like others have said, you will likely do quite well renting out to other students. Good luck!