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Buying rental properties advice

Hi I'm 25 and still have a bit of student debt, but I am lucky enough to have a pretty well paying job for someone my age. I am interested in investing in some real estate while I live for free in an old family condo. I'm just wondering if it is the right time, with my debt and everything? I have good credit (or I think it is) around 710 when I checked it last. Debt to income is 8% and I now make 60K a year. I would be buying a condo around the Corvallis area so OSU students would always be around to rent it out. I'm worried about expenses I have not thought of, and would want to go through a property management company. by Clarissa.hovingto... from Albany, Oregon. Oct 3rd 2013 Reply


Kiernan Brown (KiernanBrown)
#49 ranked lender in Michigan - 149 contributions

You will need at @ 20% down. Other than that what you've described, would allow you to qualify for an investment property mortgage.

Oct 3rd 2013
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Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

The property income used to qualify will be 75% of the rent the appraiser says is common for the area. You may get more income by renting rooms to college students. You will need 20% to 25% down payment. Figure 10% of the gross rent as management expense, and don't forget the HOA fee, and utilities, if you rent by the room. Good luck.

Oct 3rd 2013
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Hi Clarissa,Buying Investment Property can be tricky. Give me a call and I can walk you through the steps of the process and educate you on the advantages and disadvantages so you go into this knowing all the facts.Chris Barry NMLS 234461503-515-2309

Oct 3rd 2013
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Pete Bass (PeteBass)
#30 ranked lender in Connecticut - 476 contributions

Clarissa, it is great that you want to buy real estate- when speaking with a lender you will want to keep this in mind- do you have the 20-25% to put as a down payment,Do you have the reserves that will be needed to fix the property when needed,How much is the property management go to charge you in fees-renting out to college students expect a lot of wear and tear to the property-also, have the lender do a comparison of rent roll vs. paying off your student loans-Go Beavers-

Oct 4th 2013
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Sarah N. Montes (TXPRIDE)
#180 ranked lender in Texas - 18 contributions

I can get you an Investment Loan. Let's talk, Call me any time (800) 515-0445.

Oct 11th 2013
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