5 Advantages of Taking Out a Rental Loan
Deciding to buy a rental property can be difficult for first-time buyers. With the help of a rental loan, your first property purchase can be easy, save you money, and increase your business growth in years to come. With real estate demand at an all-time high, there is no better time to invest in a rental property than now, and our friends at First Equity Funding explain why:
1) Total control with a smaller investment
With the help of a rental loan, you can gain total control over an investment while spending a smaller amount of your own savings.
- Rental property allows the owner to choose who leases the property, how much rent they pay, and the building policies
- Build, improve, and change as needed while making small monthly payments
2) Property appreciation and income growth
Property values have been rising. Property is expected to keep rising in values, meaning your return in value will be even higher.
- Home values in America have risen 7.6% in the past year and are expected to rise another 6.4% in the next year.
- With a steady economy, home values will continue to rise and so will the value of your rental. Higher values mean higher rent and more potential tenants, resulting in more income on your part.
3) Tax write-offs
Buying a rental property comes with many tax breaks, saving you in the long run.
- Depreciation is deductible for rental properties on a set-government schedule, even if your property is appreciating in value.
- Available yearly write-offs include interest, repair costs, use of personal property, insurance costs, travel expenses, legal services, property taxes, and home office deductions.
4) Rates to fit your needs
Different rates are available to fit your needs and your payment plan. You will not be forced into a singular plan; it is all about what you want for the future of your property.
- 15-year and 30-year plans are popular choices for rental loans
- Tenants pay down your mortgage for you. The longer your own and lease a property, the more rent money collected that can be allocated towards your loan capital.
5) A stable investment
No more investing in risky stocks; your rental property is an investment you can touch. With complete control over improvements, tenants, rent and more, you can take a hands-on approach to help with your profit margins and personalize your investment property.
- Rent is real income; after paying your expenses, the rest is yours.
- Since 2007, the number of renters in the U.S. has steadily increased and is expected to continue to increase.
Interested in a rental loan? First Equity Funding lends in 40 states and offers aggressive rates and leverage. To speak with one of the hard money lenders from First Equity Funding, contact them today.