Getting started in rental property investing with

[Ralph Chappelle]

Good afternoon....I've been reading the book on rental property Investing. A wealth of information however I do have a question. When doing the numbers to see if a property will return a positive cash flow in relation to using a FHA ****. Do I have to account for anything different of course my down payment is smaller than if I used a conventional 20% down payment to get started and figured FHA would benefit me better to start out...Nervous but yet ready to dive in!

[Nick Rutkowski]

@Ralph Chappelle

Yes, you'll need to take into account the property condition and PMI or Private Mortgage Insurance. It's an extra payment you'll need to make getting an FHA loan. It might leave after you have 20% equity in your house but you'd have to consult a loan officer or banker for that. FHA has tight property condition standards, the place can't be a rehab and needs to be turn key. If it is a rehab you'll need to go FHA203k and get a scope of work done. Then that needs to be approved and you'll have to deal with inspections and draws -it can be quite complicated for your first time.

@Ralph Chappelle