If you’re thinking about becoming a landlord for the monthly income and property appreciation, you’re probably full of questions about how to make it happen. Here’s a guide that covers all the basics, from researching properties to getting a Colorado Rental Property Loan.
- Research, research, research. Take a course on real estate. Make friends with local agents. Read up on property values. Study the trends of every neighborhood in your area. Being well-informed will go a long way toward making the right decision about your investment property.
- Know your cash flow situation. To figure out whether you can make money as a landlord, you need to crunch the numbers. Know how much you can afford by figuring the following expenses into your calculations: mortgage, maintenance, insurance, taxes, utility bills, and any association fees.
- Find the right financing for your situation. If you’ve got near-spotless credit, a sizeable down payment, and a great history, you may be able to go through the banks or credit unions. You might get a low interest rate, but securing a bank mortgage is more difficult these days, plus they can take a while to come through. Private loans may be a better alternative. Regardless, knowing your options ahead of time is important.
- Find a good price. Now that you know how much you can afford, you can begin your search for a property. Look to pay 10 to 20 percent below market value. To find that gem, work with an agent with plenty of experience in the area, or look for a property that needs repairs or updating.
- Set your rental price. Consult with other landlords, check out the ads for rentals in the area, and use online rent pricing tools to arrive at a good number. Obviously, you need to make sure you’re making a good profit after the mortgage, taxes, and monthly maintenance.
- Screen tenants. Here’s where you can save yourself the most stress. Finding a responsible, clean renter who pays on time will make all the difference. To do this, get a background check, call previous landlords, and think about paying for a screening service.
Getting a Hard Money Colorado Rental Property Loan
If the banks and credit unions are turning you down (or you just prefer to work outside the conventional banking system), a hard money Colorado Rental Property Loan might be the way to go. You’ll use collateral to secure the loan, so you won’t have to jump through the same hoops.
Colorado Rental Property Loans in Colorado
Level 4 Funding offers Colorado Rental Property Loans of up to 90 percent LTV with flexible terms and no prepayment penalties. Plus, you can get funded in a matter of days! Call us today to find out how.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.