Andrew Carnegie once said “Ninety percent of all millionaires become so through owning real estate.”
I am not sure how accurate that statistic is, but there does appear to be some truth in that statement and it does capture my attention, as I am sure it has many others looking to enter the real estate game as a means of wealth creation.
Perhaps you’re considering buying your first rental property as an investment. You’ve read books by Donald Trump and Robert Kiyosaki, attended a few seminars, and are now ready to take the plunge. Or perhaps you’re the seasoned investor looking to diversify your portfolio or leverage the equity on an existing home. Either way here are a few things to consider.
• Maximum four units if multi-family
• Purchases, new construction, and existing properties
• Rooming houses
• Time share units
• Rental pools
• Commercial/industrial zoned properties.
• Purchase with as little as 20 per cent down payment.
• Refinance up to 80 per cent of the property’s current value.
• Eligible for a line of credit with interest-only payments based on reduced loan-to-value.
• Corporate entities eligible with personal guarantee.
• Amortization up to 30 years.
An experienced mortgage professional that has worked with rental properties before can assist with determining the right structure for this endeavor.
Of course, there are other items to consider as well, such as if you manage the property on your own or if you hire a professional management company.
The variable costs involved to maintain the property (maintenance, vacancy contingency, etc.) should also be considered.
Additionally, if you are considering becoming a landlord, you will want to know your rights and the rights of your tenants