Question by Gogo: How do I start in the home rental business?
I refinanced the mortgage (<60K) on my home about 3 months ago. Now my wife and I are thinking about financing the purchase of a second home for the purposes of earning rental income from it. Is it possible with a mortgage to do this? What does it take in terms of capital and mortgages to get started in this?
Best answer:
Answer by Iffy
You need 25% cash down payment and apply for a commercial mortgage. Be prepared for everything to cost more including insurance. Make sure you know how to repair and maintain the rental or have experienced mechanics at your ready. Be prepared for 2 am phone calls because the moron tenant lost their keys. Make sure you have enough in savings to meet monthly bills when tenant fails to pay rent.
Learn the Rental laws in your state.
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