Rental properties are attractive for a number of reasons: they are a great way to establish equity, home ownership, long term cash flow, and even a retirement. Rental properties are secure in recessions when renting becomes more common. Furthermore, rental property loans Arizona to finance acquisition and renovation are not hard to come by and form a great starting point for new investors.
To invest in rental properties, buy distressed real estate to get into a property for a lower cost with room to even renovate afterwards. Buying distressed property is not always easy in a competitive market with a limited housing supply, but it is possible. Frequenting auctions of foreclosed or distressed homes may be a start. Getting to know individuals who will need to quickly move from an area or home and are looking to sell. Other options are finding individuals who have recently inherited property and are not up to keep up with the cost of property tax or estate maintenance. More options are on the table as well for those intent upon finding them.
Finding a distressed property in an area that will establish a favorable lease rate is paramount. Draw out the total foreseeable costs of the project. How much to acquire a distressed property, how much to renovation will be needed, how much rent can be charged, and how much will financing charges come out to be. Putting the numbers together and looking at properties that offer a great return potential.
After locating a property that is suitable to be refurbished and rented, find the lending you need. Since conventional lenders do not like to lend on distressed property, hard money rental property loans are your best bet to acquiring and renovating real estate. Hard money lending will allow you to close in quickly upon a suitable property and receive a loan within days to a week. Lightning fast, where conventional lending could take months to complete.
Talk to a hard money broker to find the rate, term, and loan-to-value needed for the rental investment. After acquiring the property and getting funding to renovate through Arizona rental property loans, find renters and establish a lease rate that allows for paying off the active hard money loan. After refurbishing and establishing a renting rate, bridging to a conventional lender is on the table to reduce the cost of interest required by hard money lenders.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.