Peter Matera - Rental Property Investing: Create Wealth and Passive Income Building your Real Estate Empire. Learn how to Maximize your profit Finding Deals, Financing the Right Way, and Managing Wisely.

RENTAL PROPERTY INVESTING

Create Wealth and Passive Income building your real estate empire. Learn how to Maximize your profit Finding Deals, Financing the Right Way, and Managing Wisely.

By Peter Matera

Copyright Peter Matera

All rights reserved. No part of this guide may be reproduced in any form without permission in writing from the publisher except in the case of brief quotations embodied in critical articles or reviews.

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The information contained in this book and its contents is not designed to replace or take the place of any form of medical or professional advice; and is not meant to replace the need for independent medical, financial, legal or other professional advice or services, as may be required. The content and information in this book has been provided for educational and entertainment purposes only.

The content and information contained in this book has been compiled from sources deemed reliable, and it is accurate to the best of the Author's knowledge, information and belief. However, the Author cannot guarantee its accuracy and validity and cannot be held liable for any errors and/or omissions. Further, changes are periodically made to this book as and when needed. Where appropriate and/or necessary, you must consult a professional (including but not limited to your doctor, attorney, financial advisor or such other professional advisor) before using any of the suggested remedies, techniques, or information in this book.

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L ets start..

Property investing can be confusing, expensive, and a lot of work. One of the most confusing things is that there are many different types of properties, so most people dont even know which property brings about the best profit and opportunities. Rental properties make for great investments, especially if youre a beginner.

One of the biggest reasons is that they have a lot of different finance options. Youll more than likely need to get a loan to acquire the property, and that in itself can be difficult. There is actually a loan called the conventional loan, which is the most sought-after type of loan for rentals.

As the borrower, you are required to make a down payment of around 20 to 30 percent of the full amount you take out. And that can be a lot of money upfront, but its actually better for you in the long run. This specific type of loan has a steady and low-interest rate, which is fantastic news for a person investing in rental properties. Think about how long youll have the property for.

Typically, its something youd like for decades because there will always be people needing to rent, and the normal duration of a loan is around 15 to 30 years. So, having that low steady interest rate over the span of 30 years is the best possible outcome. You dont want to end up paying double the loan back, which is what can happen if your interest rate is too high.

Also, a conventional loan will use your rental property as security and collateral for your loan. That means you dont have to put up your own house or car as security, which will be good if for some reason the property doesnt work out. And as an added bonus, the income you would potentially make from your rental isnt calculated into the loan. Meaning that the income you can expect to receive from your rental doesnt come into play on whether you get accepted for the loan or not. However, its important to take the expected income into consideration so that you know whether youd make enough to pay back the loan in time.

If your income ends up being too little, youll have to use other means of money to pay the loan back. Youll end up losing money over time! Make sure to calculate your potential income when deciding how much to pay back the loan each month. If a conventional loan doesnt sound like the right fit for you, you can also try a private funding loan. The negative of this type of loan is that it has a higher interest rate. On the flip side, it takes a much shorter amount of time to get this type of loan than a conventional one.

Choose a private funding loan if you know that your rental investment has a really good chance of succeeding; if you have a great business plan and know the location, property, and everything else adds up perfectly for success. If youd prefer a conventional loan, but like the quickness of a private funding loan, then you could actually get a private funding loan for a short-term need until your other conventional loan is accepted.

Rental properties have a lot of flexibility, which is another great reason to choose them! It ends up being left up to you on how youd like to rent out your property, all while making a profit. You choose what works best for you and how to implement it. Think about it this way. There are long term and short-term type rentals. Both have negative and positive reasons to choose them, and its up to you on what works best for you. There are the more traditional long-term rentals, which typically have a lease term of 6 to 12 months. This ensures that you are guaranteed tenants and a steady rate of occupancy, which could last for decades depending on how long the tenants would like to stay and whether theyre actually good tenants.

Then there are the short-term rentals, similar to how Airbnb is run. These have at most a lease term of 6 months, usually much shorter than that. They can be a little more difficult to keep up with, and you run the risk of putting up with not so great tenants. However, because its such a short time of leasing, youre able to charge a higher income and make a bigger profit. One big benefit of having a rental property is the option of actually living there yourself. You can live in your own property, and rent out all the other space. That means instead of you paying rent, mortgage, etc., in your own house, you can make the money to pay all that through the tenants. This works best in a house or apartment that is at least 3 bedrooms and has at least 2 bathrooms. You can take up one of the bedrooms/bathrooms, and rent out the others. And its up to you which rooms you rent out. You can decide to either take the master bedroom and rent out the smaller rooms, or take a small room and rent out the master for more money. Doing this also has the added bonus of a more convenient financing options since its easier to finance your main home residence.