Pre-qualify for your New Home
We offer a great selection of Investment loans.
- Up to 80% Loan to Value for Single Family
- Purchase 2-4 Units up to 75% Loan to Value
- Fixed, Arms, & Interest Only Options
- Up to 2% back from seller for closing costs
- Close with in 30 Days
Why Invest in Real Estate
- Invest to get a great rate of return on your money.
- Invest to gain equity over a long period of time.
- Invest to purchase, fix up, & sell for a profit.
Buying a Rental? Here are some Do's & Don’ts
- Use an agent that has experience with purchasing rental properties.
- Always calculate your Return on Investment (We can help you with this)
- Location Location Location
- Be conservative when calculating the return on investment
- Do not purchase based on emotion. Always purchase based on logic.
- Do not purchase based on future potential appreciation. Unless you are getting a good rate of return.
- Do not buy unless you have at least 6 months reserves in the bank after purchasing.
How to Calculate Your Return on a Rental Property
- Add up the down payment + closing costs + repairs needed = Investment.
- Subtract the total monthly payment (PITI) from the gross amount of rent = Monthly Cash Flow.
- Add up any monthly expenses including property management fees, monthly repairs exc and subtract this from the Monthly Cash Flow = Net Cash Flow
- Multiply the Net Cash Flow by 12 = This is the yearly profit of the Rental.
- Divide the Yearly profit into the total Investment from #1.
Example: $130,000 4-Plex Purchase
Investment = $32,500 Down Payment + $5000 Repairs + $3,000 Closing Costs = $40,500 is the total Investment
Total Rental Income $2,000 – Monthly payment $714 = Monthly cash flow $1286
Other Monthly Expenses $250 – Monthly Cash Flow $1286 = Net Cash Flow $1036
Net Cash Flow $1036 x 12 Months = $12,432 Yearly Income
Yearly Income $12,432 / Total Investment $40,500 = 30% Rate of Return