Residential Rental Properties

How to get a rental property mortgage with the best rates available!

Rental properties a strong investment opportunity offering cashflow opportunities while leveraging funds and obtaining an asset that appreciates in value over time.  You get paid now, and you get paid later!

I have helped many property investors purchase and refinance their rental properties at rates that they didn’t even know was possible for rental properties.  One prerequisite for purchasing a residential investment property is good credit.  Below are some other guidelines that can help you get started.

How much do I need to put down?

Up until April 19th, you could buy residential investment properties with as little as 5% down, although the mortgage insurance premium was very expensive.  As of now, you will require 20% down in order to buy a 1-4 unit residential property.  If your preference is for apartment buildings or buildings with more than 4 residential units, please see my commercial mortgage page.
How much income do I need?

This will vary depending on the lender and the property you are purchasing.  I have some lender options that will not require personal income at all, but the property’s income itself will need to be able to make the payments on the mortgage.

Is there anything else I need to know?

One thing that should be noted is that it is easier to finance homes with all legal units as opposed to unauthorized or illegal suites, however it is not impossible to finance a home with illegal suites.  Rooming houses are extremely difficult to finance and manage, and should be avoided if possible.

One thing that I would also mention is that (as much as I love the Vancouver area) that buying rental properties in the Vancouver area is difficult due to high prices and relatively low rents.  You will not likely have the property appreciate in value as quickly.

These guidelines are very general in nature, and are often changing, and it is a good idea to discuss your specific needs with me in order to determine what you can do with regards to financing rental property.  Call me today and I would love to sit down and discuss with you how to become a property investor!