Rental property Investors... Another question?

[tranger2]

For those who borrow money to purchase their properties, what are the normal rules of local lenders as to the down payment amount? I was just on a website and if you didn't put 50% down, there were no mortgage products available. What percentage is normal for loans on rental property if you have excellent credit in the OKC market?

Do you usually make the renter pay all expenses or do you pay for any utilities (gas, elec, water, cable?)

thanks in advance...

 

[castleeleven]

They pay all utility fees is better option. No info on loans. Less mortgage the better. You will have less headache and more time to play more guns.

 

[J.T.]

http://okcreia.com

I was a member when I lived in OKC, lots of great networking and hard money lenders. It's worth the time/money if you put in the time.

 

[FullAuto]

I deal with a small bank. They only have 2 branches. But because of this, there aren't any underwriters. The loan officer, who also happens to be a Vice President, has authority high enough to approve anything I'm buying. Their interest rates are a little higher than normal mortgages, but they are so much easier to use, have much cheaper fees and the ability to close fast. For investment properties, they require 20% down and will only do 15 year mortgages. I don't want 30 years anyway.

Renters pay all bills. The only thing I'd consider throwing in is lawn care. By mowing the lawn, you ensure it's done and it gives you an excuse to go over there regularly to keep an eye on things.

 

[mr ed]

20% is pretty standard I think.
I've used various mortgage companies and the servicing always seems to get sold to Wells Fargo.
So you might start there.
Don't pay the bills, renters leave the doors open all year. what do they care if their not paying the bill.
they'll let the water run all the time too.

 

[OKCShooter]

I pay cash for each house so I can't help with lending information.

The below resource answers the utility question directly:

http://oklaw.org/resource/landlord-tenant-rights-and-duties?ref=cStVz

 

[montesa]

I've heard and read that if you're interested in real estate investing putting together a group of people that are willing to invest is a good way to get started. Minimize individual risk and increase buying power. Finding four honest, easy going and reasonable people might be difficult though.

 

[nofearfactor]

http://oklaw.org/resource/landlord-tenant-rights-and-duties?ref=cStVz

This is required reading for Oklahoma. I own property in 3 different states and while theyre all close some stuff is slightly different.

I sometimes have provided water/trash; I sometimes have had tenants do the lawns; that kind of stuff is negotiable as far as Im concerned.

I also have always paid for my properties with my own money also as Im not a large operator, I keep my inventory small, easier to handle.

 

[tranger2]

20% down with rates currenty at 3.75 on a 15 yr note. Feds require 25% down if you 4 or more investment mortgages already.

Where can you get that deal?

Called Weokie today...on rental, they require 40% down, 15 year max and 7.99% interest.

 

[TJay74]

For those who borrow money to purchase their properties, what are the normal rules of local lenders as to the down payment amount? I was just on a website and if you didn't put 50% down, there were no mortgage products available. What percentage is normal for loans on rental property if you have excellent credit in the OKC market?

Do you usually make the renter pay all expenses or do you pay for any utilities (gas, elec, water, cable?)

thanks in advance...

Here is my input for you or anyone else who is or wants to be a LL. DONT EVER PUT THE UTILITIES IN YOUR NAME...!!!

Make the tenants put them in their name, by putting them in your name if the tenants owe final bills with the utilities it can lead to you having to take care of those final bills. If your tenant is secretive in putting the bills in their name then they are hiding from final bills. I have worked for the electric company for almost 7 years now, I have seen it all and have plenty of stories.