Posted on: 17th Jan, 2009 06:51 am
Is it a good idea to purchase a home (mortgage) and straight out rent the property? If so, why? If not, why?
What are the factors I should be paying attention to if I choose this path?
What are the factors I should be paying attention to if I choose this path?
Hey jdimstrnate,
Yes, you can purchase a property and then rent it out to a tenant. But you should note that the lender should be informed about this. If you do not inform the lender and rent the property, then the lender may call the loan due immediately as he comes to know about it.
If you are planning to rent out your property, you need to go for a proper agreement with your tenant so that both of you are benefited from this. This will also help you in avoiding problems in the long run.
Yes, you can purchase a property and then rent it out to a tenant. But you should note that the lender should be informed about this. If you do not inform the lender and rent the property, then the lender may call the loan due immediately as he comes to know about it.
If you are planning to rent out your property, you need to go for a proper agreement with your tenant so that both of you are benefited from this. This will also help you in avoiding problems in the long run.
Hello- There are many factors here to consider. For starters-
A. How close do you live to it?
B. With 75% of the rent amount cover all of the mortgage payment (including property taxes and homeowner's insurance)? That's a good benchmark to consider.
C. Do you already own the property? If not, getting a loan nowadays on investment property is pretty tough. Generally, you'll need 20% down payment- even if it is a single family house.
D. You need a good lease agreement with the renter, and you have to screen the renter well to avoid headaches.
Those are just some things to consider. Good luck,
Ken L.
A. How close do you live to it?
B. With 75% of the rent amount cover all of the mortgage payment (including property taxes and homeowner's insurance)? That's a good benchmark to consider.
C. Do you already own the property? If not, getting a loan nowadays on investment property is pretty tough. Generally, you'll need 20% down payment- even if it is a single family house.
D. You need a good lease agreement with the renter, and you have to screen the renter well to avoid headaches.
Those are just some things to consider. Good luck,
Ken L.
