Don't jump into deep water without swimming around in a bit first. Make SURE you like the rental business. It is not all gravy. Tenants move out without notification. Repairs need to be made at a faster rate than they do on your own home. There is trash they leave behind.Collections are not always easy. What do you do if you get a call saying, "My toilet is not working"? Do your financial calculations based on a vacancy rate. There should be some vacancies, otherwise you may not be charging enough. But you don't want many of them.
I would buy a few, 2 or 3 perhaps, with your cash and see how you like the business and see how it is working for you. Should you have chosen other areas? Different types of homes? Commercial instead? Answer these kind of questions with a smaller investment. Once your business is established, you will have better luck securing financing for other acquisitions.
Personally, I stick with what I can buy for cash. Conservative, which limits my top side, but safe. I also like knowing a business well before I invest in it.... more
There is not necessarily less conbos that qualify - until recently, the lender could do a 'spot approval' for FHA financing. This rule has been changed and either the condo association of someone approval by FHA must submit an applicatoin for approval for full FHA financing. As you probably have noticed, there are not a lot of condos on FHA's approved list. The process is somewhat labor and document intensive so you probably will not have much luck getting the condo association to take on this task. I'm not sure why the homeowner's don't pressure their assocatioin to do this, it certainly is a great selling tool and a benefit to all association members to be able to offer FHA financing on their units. There are some companies that will do the approval paperwork for a fee, contact me for their information.... more
Steve, Sorry, I had to look up the website. This site will let you ESTIMATE your new taxes for any home. Homes purchased after May 1st will have taxes pop up the next tax year so its best to estimate your new taxes into your total payment Make sure you enter the correct school district, part of Commerce is in Huron Valley and Waterford schools so do not assume Walled Lake.