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Denise Grabb Mortgages in St. Louis Portfolio Loans in St. Louis, MO! 

By: Denise Grab

2020 has made a mark in history! I mean, who would have ever thought that finding a pack of toilet paper at Sam’s was like winning the jackpot at the casino? Some have come out ahead and others are struggling to stay afloat. If I told you that I had a Win-Win option for both sides of the pandemic you would probably think I was crazy BUT actually, I do! 

Have you ever thought about purchasing an investment property? Is now the time to expand that portfolio? YES! 2020 is the year to take the leap of faith and just do it! Let me tell you why…You have probably heard that interest rates are at all-time lows on ALL mortgage products and programs. If you own a home and have not called your favorite mortgage banker about refinancing, you are doing yourself a disservice. These low rates make purchasing an investment property even more appealing and affordable! You can purchase an investment property with just 25% down. It may seem like a lot but depending on the amount of the monthly payment vs. the rental rate you can charge, your breakeven might be much sooner than you think. Let alone, this could be a major tax break for you with Uncle Sam. 

So while you are earning that extra commission and working hours of overtime, use that money to save and apply it to a down payment for your first investment property or for that ever-expanding portfolio. The difference of what you earn in the traditional mortgage payment and the rental rate you charge can be an extra source of income for you when times are tight. Eventually down the road, this will end up being just another stream of income once the loan is paid off and you are saving the rental income that you are charging every month to your renters. You will still have to pay the taxes and insurance for the property, however the monthly income with more than cover that. It doesn’t happen overnight, but if you are aggressive with your mortgage payment, it can happen much sooner than you think! 

The other genius idea would be to purchase a primary residence multi-unit property and live in one of the units and rent out the other 1 or 3 depending on the property. This has several benefits! Your renters pay your mortgage payment and you earn a monthly income. Just to be clear, it is not acceptable to have a single-family and rent out rooms in your house. Unfortunately, it is not the same thing! You can purchase a multi-unit property with as little as 3.5% down and have a VERY attractive rate because again, it is your primary residence!

Remember, 2020 is your year and one that will go down in history! Make your own mark in history and become a landlord! Real estate has produced many of the world’s wealthiest individuals and you could potentially be the next. 

Don’t let your next opportunity pass you by. Call us today for more information on your next opportunity. For comments or questions, please contact Denise Grab at 314-220-9620 or dgrab@firstintegity.com, NMLS# 738524.