Im new to the real estate market but I am an investor in the stock market and peer to peer lending. I have been reading and doing a lot of research through BP and would like to buy somewhere on the lines of a triplex or fourplex as my first rental property. I was looking in to getting a personal loan to fund the initial 20% down in order to avoid a lot of the issues of buying without that and then renting indefinitely. if anyone has any advice or mentoring I am more than ready to receive it please!
I don't know what issues you think you will avoid by getting 2 loans instead of 1. Most lenders will not lend if they think your down payment money is another loan! If you don't have the money you can look into owner-occupied loans and live in 1 unit while you save up enough money for the next.
Best of luck and happy investing!
I just noticed this Provo forum. I work at a brokerage in Provo and we have triplex and fourplex options that are new construction and pre-construction. Cap rates range from 6.5% to 7.7%. Please let me know if you would like to see more information about it.
Originally posted by @Sam Levin :
Cap rates range from 6.5% to 7.7%. Please let me know if you would like to see more information about it.
Why would there be such a big range in cap rates for new construction?
Great question. The range actually represents the difference between a resale for $730k that's 2 years old at a 6.5% cap rate, and a pre-construction purchase for $659k of the same building type which runs at a 7.7% cap rate upon completion.
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