The average initial down payment for buying a home in the United States is $15,000. The down payment someone pays to buy a home is essentially the first portion of their mortgage payment. After that each monthly payment continues to chip away from the mortgage and reduces the loan little by little. With every payment including the down payment you gain a little more equity in the home.
Usually the rent a home owner charges on their investment property is at least high enough to cover the mortgage payment and other home owner expenses. This is especially true in areas with good rental markets and demographics. As we have mentioned in previous posts, location is very important, it dictates how much rental income can come in to cover all the expenses until finally the property can be cash positive.
Single family home as a rental property is less costly as an investment, compared to multi-family properties, however, it takes a longer time to see a big return on investment. However, it is depending on the location and the market it is an investment that can easily be sold in a pinch if you need the money.
A single-family home is more hands-on compared to multi-family properties. Your investment keeps you involved, unless you can afford to have the property managed by someone else, you are the manager, you have to handle issues and repairs, worry about maintenance and so on. When you invest in a larger property you will have more rental income cash flow, allowing you to pay for management, or as many other investors you can invest with a group of investors through a real estate investment group (www.aminvali.com).
REIGs or groups like Amin Vali Consulting Group take care of the management, maintenance and all other matters while the investors only worry about larger matters and their monthly cash flow. Investors then have more time to focus on other ventures or simply use their investment for passive income.
If you are interested in investing for a source of passive income REIGs allow you to do so, if you like projects and want to be involved then buying a home to rent or sell is the way to go (www.aminvali.com).
Civil Engineer, MBA, Real Estate Agent, Multi-Unit Construction Project Manager in California,
USA Phone : +1(310)925-3878
Web : http://www.aminvali.com
E-mail : firstname.lastname@example.org
Realtor in Zutila Inc.