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Buying or Selling a Home/Buying and Renting Out A House

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Expert: - 6/2/2009


Question
I am interested in buying a house (without selling my own), renovating it, and renting it out. How much money do I need to start this? Can I be in the process of buying a house, and renting it out to someone, i.e. I buy a house worth $120,000, and I put a down payment of $10,000, but I don't outright own the house yet because I just put the down payment and have yet to pay off my mortgage, but can I still rent it out to a client for say $700 a month?
 Do you have any advice as to how I should go about buying another house?
Any tips would be appreciated, or inside info.
Thank you

Answer
Hi Caine... you actually have a couple question in this question...
First congratulations on wanting to buy income property... your lending situation is different than we have here in California where I am... to buy income property we are more at a 20-25% downpayment programs... so good for you if you can qualify and buy with only $10,000.  Here you are not allowed to start a re-hab until you are the recorded owner... the liability is too great to all parties should something go wrong... with your loan, a fire at the property, not having a clear title to transfer ... the list can go on around the globe... Speak with your lender... make sure your contract is solid and what you want as far as terms and contingencies go...

On your question on buying another - in addition to this one - you may or may not qualify to buy another... do yourself a favor and find a good reputable loan officer and work with that person... treat them like your priest and let them find you the best programs out and available to your situation...

Keep in mind loan programs change out continuously.. since this is not your job, don't try to do it all... get a team of great people in your corner that can advise you... realtor, lender, inspector, contractor, manager, financial advisor etc...

Good luck

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Connie Wildasinn-Broker,GRI,RealtorŪ

Expertise

Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!

Experience

4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!

Organizations
NAR, CAR, WCR, ABR, e-Pro, GRI, BKBIA, CHNA,SSG

Publications
Broker Agent Magazine Long Beach Business Journal Long Beach Press Telegram Signal Hill Tribune Grunion Gazette All Experts Zillow - Lead Agent - Advise Expert Truila - Advise Expert

Education/Credentials
Broker-owner, RealtorŪ, GRI,e-Pro, SSG-Short Sale Certified

Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing. 15 years running top selling agent in Long Beach, South Bay area California. Top Producer 5 years straight Re/Max, C21, Realtyworld.

Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!

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