Starting my first rental

[Jason Conover]

Refinancing my current home to use as a long term rental. Grate rates available, a lot under 3% for 30 yr fixed. But get very expensive in closing costs. Curious about folks thoughts on buying points to get a super low rate, vs keeping closing costs low and going for a higher rate to break even faster. Thoughts?

[Jaron Walling]

@Jason Conover If you're rate is <4% for an investment property that's great! Rates are historically low but what's more important is running the numbers. If you didn't buy with the intent to rent the home in the future you may not be cash-flowing at all. There are numerous posts that discuss this in detail. I encourage you to research the expenses for buy and hold properties (vacancy, CapEx, property taxes, insurance, maintenance, management). If you're factoring for this good job.

I'd be more concerned with savings for reserves, cash-flow, and managing tenants expectations.