Profile picture for investing hicks

hello im interested in doing an ivestment to by a home to rent out what would be the down payment

in Avondale, price range 100k to 170k
  • October 09 2013 - Avondale
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (6)

When you are buying an investment property things are a bit different than when you are buying a primary residence property. Since investment properties are riskier for a lender to finance they require a higher down payment and higher rate. The down payment can be 20% or higher depending on your lender and finances. These are just some important things to keep in mind while looking for an investment property. I recommend you speak with a lender like myself that would be glad to speak with you!

Well I hope this helps! If you have any other questions or if you would like a loan, feel free to contact me.

Good Luck
  • October 09 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Chris Boyles
20% down is the minimum down payment you can put down for investment property you plan on renting out.  You may decide to put more down depending on the cash flow that you would like to receive and if you are going to go with a 15 year loan or a 30 year loan.  You will have less cash flow on  a 15 year loan but you will pay the property off and pay much less in interest.  I prefer a 15 year loan because for one, you will have it paid off much faster where you will have much higher cash flow once it is paid off.  The second reason is that you will pay taxes on the additional cash flow you get from a 30 year loan each year and on the 15 year, that additional money will be going towards principal and interest.  One more thing on rentals, If this is your first one, I would setup an LLC for the ownership of the property to keep it separate from your personal assets, this will protect your personal wealth and assets.
  • October 09 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Generally, if you live and work in the US, you will be required to put down 25% (non-owner occupied) unless you are obtaining a 4 unit or less multi-family and will be living in one of the units then you might be able to put down only 3.5%.  If this is your first rental, your current income cash flow will need to cover your existing debt obligations plus the new loan without considering what it might get for rent.  Your best choice is to speak with a lender to get the specific and then obtain a loan pre-qualification before going shopping.  An experienced investor's real estate agent can help guide you.  It is not for everyone.   Before you jump into an investment, I recommend that you study the project cash flow and recognize that you should plan that the rental may sit idle for 1-2 months out of each year between tenants. Dont for get maintenance and the necessary fix up between tenants.  Should you need lender recommendations, let me know.
  • October 09 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Have you spoken with a lender yet about what you are looking for?
  • October 09 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for craigfial
It depends.  If you are a US citizen with verifyable income and high credit score, you can put down as little as 3% with HomePath Mortgage.  if you are a foreign national, there are a few banks lending, but the down payment runs 25% and the interest rate is not as low.
  • October 09 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Academy Mortgage AZ
On any investment home, the minimum down payment requirement would be 20%.  You may get a better interest rate if you put 25% or more down.

Thanks,
Julio Zapata
[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • October 09 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.