neophyte rental property questions

[beanmaestro]

So, given the interest rate and RE prices that seem to be near bottom in Ventura county, we’re considering the wisdom of picking up a SFH, duplex, or (maybe) 4-plex as a long term investment… we’d probably be working with the first tenants to pick something they’d like (and be willing to manage any other units of)

How much should we expect to put down?
Are there key loan limits or gotchas we should know about?
What is different when buying non-owner-occupied RE?
Are duplexes & 4plexes handles differently at all?
When qualifying for the loan, are we doing that purely on spare income, or how much of the rent can we count toward it?
Does it make sense to ask an agent’s help in a breakeven property search, or should we expect to do most of the research ourselves?
Are there any books on the subject we need to read first?
Any unsolicited advice?

[(former)FormerSanDiegan]

“working with the first tenants to pick something they’d like”

– Sounds like a recipe for disaster. You should be purchasing property that meets your financial needs. That may not align wiht the tentants’ needs.

Also, if you are doing this, it means that you have an existing relationship with the first tentants. So, they are either related to you or friends with you. I don;t recommend that your first venture into landlording be encumbered by that.

– You should expect to put 25% down.
– Easiest qualifying is if you don;t need the rental income to meet qualification thresholds. You may run into a chicken and egg problem with rental income being needed, buit not documentable prior to closing.

[beanmaestro]

[quote=FormerSanDiegan]”working with the first tenants to pick something they’d like”

– Sounds like a recipe for disaster. You should be purchasing property that meets your financial needs. That may not align wiht the tentants’ needs.
[quote]

The point was more that we have a first tenant/live-in manager available if we happen to find something we both like. If it doesn’t work out, we can go the normal route. But having a first tenant secured seems like better than not.

[Author]

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