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Purchasing Rental or Income Properties in Cedar City

Owning rental properties can be a great forced savings for your future. Obviously, buying the right property at the right time as well as other factors apply to see a cash flow situation. Currently there are great opportunities to buy homes, duplexes or other investment style properties at reduced prices.

Lending and your mortgage are a different scenario in the investment field. Great credit history, a minimum of 10% down and count on 1 point above prime in interest rate, so today that would be 6.78% still a fabulous rate. With 10% down also count on PMI or Principal Mortgage Insurance added to your monthly amount. This is a fee lender’s typically charge to insure a low down payment loan. It can be removed in most cases after the loan has diminished a certain amount.

If you are fortunate to have 20% or more as a down payment, then you avoid the added PMI, and have a greater cash flow. 1031 exchanges are also a great way to move monies you may have in other properties by selling those, and “identifying” and purchasing other properties that may produce a better return for you in the future. 1031 there for have great benefits tax wise also, visit with your tax professional for further details.

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