Online Jobs Working From Home - Good Way to Make

Buy Investment Property and Live Rent Free

If you have good credit, and that’s a credit score of 700 or above, there is a really neat program you need to know about. The FHA has a program that allows you to buy rental property as long as you live in one of the rental units yourself. If you work it right, you not only can live there rent free, it will pay you extra money to cover other expenses. Here’s how it works – you can buy up to at least $289,000 in rental property with this program. So, let’s say you find a really great four-plex (a building with 4 rental units) that’s in good condition and not too old, with the plumbing and electrical in good shape. It costs $289,000.

Building (4-plex) cost $289,000
Down Pmt approx. 3.5% $ 10,200
Loan amount $278,800
@6% for 30 years Payment is $1671.55 per month
Closing costs approximately 6% paid by seller (negotiated by you)
Three of the units are leased for $1000 per month each with a total income of $3000 per month.

Now, after you close and own the property you collect $1000 per month from each tenant, a total of $3000 every month as long as all your units stay rented. That gives you enough money to make the payment plus pay for your property taxes and property insurance, with maybe a little left over to spend on yourself or use in a maintenance fund for future repairs. It gets even better!

Hidden Bonus – When qualifying to get your loan to buy this property, 75% of the Income on the leased units can be added to your income in figuring out if you qualify with enough income to buy the property, even though you don’t own the property yet. That’s $27,000 that can be added to your real income per year to count as qualifying income.

Another Hidden Bonus – If you are a first time home buyer (my understanding of the definition is, you haven’t owned a home in the last three years), you will qualify for ais plex tv free  tax credit of $7500. Now you need to confirm this with your lender and a CPA but this is what it means. You will be getting an interest free loan for fifteen years on $7500. Example: If you owed and paid $7500 or more in income taxes the year you buy and it was deducted from your payroll check, it’s all refunded to you! What you do with it is up to you. You do have to pay the money back in $500 payments added to your taxes each year for 15 years – so basically it’s an interest free loan to you for 15 years. You could even give back 75% of the money your family or friends gave you for a down payment.

Go to Annual Credit, the central site established by the three main credit bureaus where you can order one free credit report per year from each credit rating bureau, Equifax, Experian, and TransUnion. We highly recommend that everyone take advantage of this free government-mandated program. And remember, in real estate matters it is always advisable before taking action to seek the advice of an attorney, CPA, or other professionals.

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