Investing In Rental Property Can Be A Winning 🏆Strategy
This is especially true for those investors looking to generate consistent income and long-term equity simultaneously. With mortgage rates poised to decline, the numbers associated with rental investment property are making a lot more sense.
The Fed dropped the federal funds rate by a quarter-percentage point on November 7th, after a half-percentage point drop in September. and telegraphed more cuts to come. But a strong jobs report this past Friday has called future cuts into question. Some Wall Street experts still expect at least a quarter point rate reduction at the next Fed meeting in November while others don’t expect another cut until 2025. Things are pretty murky but calling for the ‘Fed to pause completely for the rest of 2024 is out of consensus,’ according to the folks at Yahoo Finance,
We should note that, although the rates we offer aren’t directly tied to the fed funds rate, our pricing has already become more favorable as the Fed makes it moves.
More and more of our clients are turning to rental property instead of the traditional short-term fix and flip. The benefits of buy and hold are many:
🎯 Steady Income Stream:
Predictable cash flow: Rental income provides a consistent source of revenue, even during economic downturns.
Long-term stability: Well-managed rental properties can generate income for decades, offering a reliable financial foundation.
🎯 Potential for Appreciation:
Market growth: Real estate values tend to appreciate over time, especially in desirable locations.
Leverage: Using leverage (loans) can amplify returns, as appreciation applies to the entire property value, not just your equity.
🎯 Tax Advantages:
Depreciation: Rental property owners can deduct depreciation expenses, reducing taxable income.
Capital gains tax deferrals: Section 1031 exchanges allow investors to defer capital gains taxes when selling one property and reinvesting the proceeds into another.
🎯 Hedging Against Inflation:
Rental income increases: Landlords can often increase rents over time to keep pace with inflation, helping to protect their purchasing power.
Asset value appreciation: Inflation can also drive up property values, further benefiting investors.
🎯 Building Wealth:
Diversification: Rental properties can diversify your investment portfolio, reducing risk.
Generational wealth: Well-managed rental properties can be passed down to future generations, creating a legacy of wealth.
Navigating the Rental Property Market
There is no better time than the present to consider our DSCR Loan Program. We now charge a flat fee of $995 for our DSCR products at closing with a zero point option for qualified investors. See the terms below:
✅ Purchase, Rate Refinance, Cash-Out Refinance
✅ Rates From Mid-6s
✅ Loans From $100K to $3.5M
✅ Residential Single (1-4 Units) And Multi-Family (5-8 Units)
✅ 30-year, 20-year, and 15-year Fixed OR 5, 7, and 10-year ARM
✅ Credit 640+
✅ Cash Out up to 80%
✅ Interest-Only Payment Option Available
✅ Gross up Rents 120%
To qualify for our best rates, we require borrowers to have significant relevant experience as well as excellent credit. These preferred borrowers will also be willing to accept a 5-year pre-payment penalty on properties where the debt service credit ratio (DSCR) is above 1.25.
Have specific questions?
We’d be happy to chat through your next project. Reach out to your loan officer directly or via 888.444.3160 or info@gonavcap.com to be put in touch. Or request a free, no-obligation quote below: