I stumbled across some properties (commercial/residential mix) that are very interesting to me assuming the claimed financials check out. (Big assumption I know). I am scheduling a showing, am if it looks ok I will start due diligence.
Where can I go to get a quick primer on owning properties as investments?
Meant to post in OT, can a mod move me please?
Down payment requirements for properties that you do not live in can be much higher than the down payment for your residence.
Done.
Insurance is also much higher for properties that are not owner occupied.
I switched our first house from owner occupied to rental and there was a small increase but we are talking a few hundred a year, not thousands. No idea on loan as it was already in place when we switched it to rental. If you buy, either have a management company run it for you or start looking for good contracts now. Find a service that can run financial and criminal checks before you rent to anyone.
These are excellent points. I have the 'financials' document from the current owner that lists costs and current income. I will check if insurance is on there. I'll be talking to a banker soon.
How is property management usually priced? Flat fees? Percent of rent? Something else?
On the residential side now if you don't have history of owning rentals they want larger than normal reserves when you purchase.
Robbie, send me a pm
mtn wrote: Robbie, send me a pm
done!
singleslammer wrote: I switched our first house from owner occupied to rental and there was a small increase but we are talking a few hundred a year, not thousands. No idea on loan as it was already in place when we switched it to rental. If you buy, either have a management company run it for you or start looking for good contracts now. Find a service that can run financial and criminal checks before you rent to anyone.
That can vary a LOT by state.
My own property insurance is very insignificant. My rental properties are VERY significant.
YMMV. (And don't assume seller's costs are equal to yours)
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