Home for the sole purpose of renting

Michael,It's a Catch 22, as a business stand point it would be great to make it a business but if you form a business (LLC) and try to purchase the property under the LLC, you will have much harder time to get financing, however you can purchase them under your own name and have them placed under business afterward, but you should consult with a Tax and Real Estate Attorney to compare the pros and cons.For more information please feel free to call or email us. Houtan.Hormozian@Crestico.com 949-242-5215

There are quite a few things that I can recommend. Yes I would form a business entity and I have a good business attorney if you need one to help you with that. If you can't pay cash for the properties then you would need a mortgage. Mortgages are a bit different on the Rental/Investment side. You can only finance up to 4 and sometimes up to 10 based on down payment and other investor requirements. If you would like some more detail on the process feel free to call me and I can give you all the information you need. Thanks

I would not suggest starting a separate business entity for this purpose. At least not until you have a portfolio of rental properties.Mortgage loans do not allow as high of loan-to-value. To have 75% of you rental income to count in qualifying income will require 30% down payment. You'll be required to retain a property management firm since you do not have two prior years of property management experience along with have a Rental Income Insurance Policy. Six months of reserves for PITI & HOA, if applicable, is also required. In my opinion, purchase a SFR. Not a Condo or 2 to 4 units. Financing will be easier now and in the future. Also, easier to sell if you decide this isn't for you. Visit my website. There's a lot of information that you will find useful.Best wishes, Rudi