Looking to invest in a rental property

[Varsha Govindu]

Hi everyone!

I am looking to invest in a rental property in Michigan. I am considering some of the college towns in Michigan like Ann Arbor, Lansing etc. 

My concerns are: If I buy a place with the intent of renting, are the interest rates and down payments high on home loans? I have come across articles that say interest rates on home loans can be high as high as 10% to 20% if the house is not intended to be my primary residence. Is the best way to buy a rental property to start off as an owner occupant to get best deals on a home loan? And, how long do I have to be an owner occupant before I can move out and turn it into a 100% rental property?

Thanks!