When you decided to buy a rental property, you probably also thought about what you want to do and how long it will take to do it. All good investment strategies and financial plans use the same criteria, and so do income properties. Most of the time, property managers charge a percentage of the gross income. This is usually between 5 and 10 percent of gross income, and there is often an extra fee for new leases.
There are many different types and terms of property financing, and they depend on the property itself. Most loans for rental properties are made to fit each type of property. Most of the time, the loan terms for apartments are longer than those for office or store space. Remember that apartments are more stable than commercial buildings as an investment property.
Before you look for a loan, you should make sure you've done the necessary research. Here is a list of questions you can look into and answer to help narrow down your request.
- How and when are you going to pay back the loan?
- What will you use the money for and how long will you use it?
- What can you put up as collateral for your loan that will give your loan officer peace of mind if he agrees to give you the money?
- What do you want?
Don't forget that loans are what banks sell. Look for the best mix of price, quality, and the supplier's reputation.
Security National Capital has more information about types of income property loans and how to get them.
