Home prices have been going up for several years, giving some investors the opportunity to “cash out” the equity they have on their rental properties. With this money, investors can buy another rental property, make improvements on their current properties, pay off real estate loans or reduce personal debt.
If you’re planning on increasing your earning potential, now is a great time to cash out your equity and use it towards another rental property. With a substantial down payment, you can take out a smaller rental loan and collect rent that offsets these costs.
Situations Where You May Want to Take Out a Rental Loan
A fix to rent loan helps you purchase homes to rent out for extra income. Unlike conventional bank loans, they may be used to renovate homes as well. Rental loans are flexible and reliable, with closing times in a few weeks rather than several months.
Here are some situations where you might want to take out a fixed rate rental loan:
● Purchase a fixer upper
● Invest in a rental property
● Leave yourself cash to maintain your properties
● Build your portfolio
● Strengthen your earning power
● Cash out the equity at a later date
Why Now is a Great Time for Fix to Rent Loans
Now is an excellent time to take out a rental loan because interest rates are at historic lows. If you have cash on hand and only need a small loan, you’re at an even greater advantage. Most lenders will want to see that you have a steady cash flow, are able to maintain construction projects and have experience in the industry.
It’s also worth knowing that you are in a stronger position to make offers on rental properties right now, particularly in certain markets. If you go through the MLS and find properties that have been sitting on the market, make an offer. The current real estate market is unpredictable, so you have a better shot of getting a great deal on an investment property or fixer upper.
First Funding Loans - Your One-Stop Solution for Real Estate Loans
First Funding Loans specializes in fix and flip loans for real estate investors. We have competitive rates and flexible loan options that allow you to purchase or refinance residential properties for renovation. Our rates are fixed, and we do not charge prepayment penalties. We are your one-stop solution for real estate financing, and our solutions are guaranteed to cater to your individual needs. To learn more about your options for rental loans, contact us today.