If anyone plans on getting an investment property, here is what I’ve learned so far. Please keep in mind that this is in our current 2012 economic environment, in Las Vegas NV. Things might be different where you are, so talk to a local professional. I am also no expert in any of this, I’m learning it as I go along, so I’ll probably do more wrong than right.
In order to be financially ready for an investment property, you will need the following things.
- 6 months rent + hoa for your current properties in your bank + documentation on where that money came from (so don’t plan on getting it temporarily from your friends).
- Down Payment for new property (3.75 if you’re going to move into it with an FHA loan, 20% otherwise).
- Escrow Cash (currently about 1000 bucks).
I just learned this today and it’s set me back a couple months.. Oh well.. you live and you learn!