Fix and Rent loans, also known as "rental property loans," are a type of financing option for real estate investors who want to purchase and hold a property for the purpose of renting it out. These loans have several benefits for real estate investors. One of the main benefits is the ability to generate cash flow by renting out the property, which can help to offset the cost of the loan.
Fix and Rent loans are usually long-term loans, typically with a term of 15-30 years, this allows the investors to hold the property for a longer period of time, potentially increasing the return on investment. Owning rental property can provide tax benefits, such as deductions for mortgage interest and depreciation. Real estate has the potential to appreciate in value over time, which can provide a significant return on investment for the investor. Investing in rental property can provide diversification for an investment portfolio, reducing overall risk.
Fix and Rent loans often have less stringent credit and income requirements than traditional loans, making them accessible to a wider range of investors. Renting out a property can provide a stable return on investment, especially in areas with high demand for rental properties. Some lenders also offer in-house construction management services, which can help investors to manage the renovation process and avoid potential delays.
Rental Property Funding
These loans are for one rental property, with loans ranging from $75,000 to $1,000,000
- Available term options include 5, 10, and 30-year loans
- There are flexible options for both the term and interest rate
- The loan-to-value (LTV) ratio for purchase and rate/term refinance is up to 80%, and up to 75% for cash-out refinance
- No personal income requirements are necessary for these loans
Portfolio Rental Loans
These loans are for two or more rental properties, with no maximum loan amount or unit count
- Available term options include 5, 10, and 30-year loans
- There are multiple structure options available to fit the borrower's unique investment strategy
- Available loan types include fixed rate, adjustable-rate mortgages (ARMs), fully amortizing, interest-only, and balloon loans
- Non-recourse loans are also available
- There are flexible pre-payment options for these loans
