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.

The following two tabs change content below.