Investing in Real Estate Part 3 - Financing your Investment
In the first two segments of this investment series I discussed the importance of clearly defining your real estate goals and some of the costs associated with owning rental property. Now, let’s take a quick look at how to finance your investment. The investment option that requires the least amount down, and that can also yield the best results over time, is the buy and hold scenario. For this type of investment, you’ll need to put down about 20 - 25% of the purchase price as a down payment; you will also need enough in reserves to do any necessary repairs and improvements to the home and make those first couple month’s mortgage payments. Where does this money come from? Well, ideally, you save it. If investing in real estate is a dream of yours and you don’t currently have that kind of money – it’s not too late to start saving now! There are some great budgeting apps that can really help you get your finances in line and work toward your goals. I like “You Ne