Being young does not always mean that you are living day to day. Learning about Rental Property Loans in Arizona could change your life.
Many finance experts say that your first major real estate purchase should be a rental property. As a younger person, that might seem like a crazy thought. But in reality, it’s not a bad idea. You are young, you have very few bills and you are not accustomed to a large home with all of the creature comforts that you will have acquired in a decade or so. So why not keep living small for a few years and begin to grow your wealth?
You definitely need a place to live, but what if you could live in a portion of the property? Rental Property Loans in Arizona for multi-tenant homes is a great way to live affordably and let your tenant pay your mortgage. Rather than live in the spacious three bedroom main level of the home, you could live in the one bedroom apartment over the garage or in the lower level while a family pays all but a small piece of your mortgage. And all the while, you are building equity in the property. In a few years, with a great deal of your mortgage paid by tenants, you could move into the larger unit or even buy a home for yourself and begin to rent out the one bedroom as well.
Your first question is how to get financed for Rental Property Loans in Arizona if you are a younger person? The answer is as simple as two words. The secret is the down payment. If you can pay 25% or even 30% down on a property, then you will be able to get financed as long as you have a good credit rating and a steady job. The lender will see instant equity in the deal and know that the property represents solid collateral for the loan.
Getting The Down Payment
Most young investors don’t have 50k or 60k sitting in a savings account to make the down payment on a $200,000 rental property. But there are several ways to get the money if you are dedicated to your plan and want to have a tenant paying your mortgage. The most obvious method is a second income. This could be a part-time job, a second job or even a side gig that will make you some extra money. The secret is to never touch the money. Just put it away in an account and act like it is not real. In just a year or two, you could save enough to become a property owner and a landlord. Not only will you be saving your second income, but with less free time, you will be saving on entertainment expenses like moves and eating out as well.
Stay Smart
Even after you have saved enough to make the down payment, you could still keep working and saving to begin the process all over again. In the space of a single decade, you could obtain four Rental Property Loans in Arizona and own four properties which are bringing in money each month. And the best part is that you only made the down payment on each property and then a tenant paid the rest of the mortgage for you. By the age of 35, you could be well on your way to owning multiple rental properties which are over getting close to being paid off.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
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.
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