Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

Screening tenants well and then a security deposit or credit card hold process in place will limit liability.

To do well, build a strong money base, keep a good credit score, and look at other loan types besides FHA.

In some cases they cannot pull the money out because it is now (Non-owner occupant) an investment and their credit union or bank may cap them at 70% or 75% MAX LTV.Nothing wrong wiht putting 10% down on a primary but look at the rates on both 5% and 10% usually when you have PMI built in the rates stay the same.

Have the tenant pay for repairs and maintenance with future rent increases by using a line of credit.

Small banks and credit unions focused on farm/agriculture tend to be the most aggressive with land/lot loans.

When I look for my next property, I work on cleaning up credit, so my scores are as good as I can get them.  

The bank will want you to be working for a certain amount of time and that have certain credit score plus have your financial ratios match what they want. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.