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How to maximize return on rental property

Any options for below 20% down? by jackwelsh.67001197 from Roslindale, Massachusetts. Feb 6th 2015 Reply


Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

Consider owner finance and subject-to.

Feb 6th 2015
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 637 contributions

Not sure we have enough information to give you an educated answer..

Feb 7th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

85% LTV is possible depending on overall qualifications

Feb 7th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

- for conforming loans to Fannie and Freddie.

Feb 7th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Lenders will allow an 85% LTV, so only 15% down would be necessary, but you will have to pay mortgage insurance.. so a lower down payment will not maximize your return, it will worsen it.. Ideally, 25% or more will get you much better loan pricing.. This is in regards to conforming loans.. There's private money (hard money) or portfolio loans available but expect the LTV to be much lower than conventional.. and the rates and fees will be higher.. again worsening your return.. the last alternative is finding sellers willing to carry the loan, but i will caution you.. typically in a good market, the only folks offering seller financing are those who have either distressed properties, and could not sell them using conventional means, or they are way overpriced, and by offering seller financing, it's a way to make more on the sale.. The best alternative for financing on a rental property is using equity in your owner occupied property to pay cash for the rental.. Assuming you have sufficient equity, you can do a cash out refinance on your primary residence, which will give you much better rates and fees than that of an investor loan, and then use those proceeds to purchase for cash your investment property.. Understand that any competent loan officer can go over all these scenarios and educate you on the upside and downside of each option.. for this reason, it's best you contact a local mortgage broker, sit down with him and let him look at your compete profile.. once he sees the full picture, he can advise you properly.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Feb 9th 2015
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