Growing Your Landlord Business? 3 Reasons To Consider Jumbo Loans
More and more Americans are choosing to build a stable and healthy passive income by being landlords. But when you're ready to move on from your first small rental and enter the world of multiple unit rentals, how can you ensure success on a larger scale? One way is by opting for a single jumbo loan rather than multiple individual unit loans. Why? Here are a few key reasons to consider this strategy.
1. One Loan Is Easier to Manage
A single large loan can be much easier for the small landlord to manage and budget for than many smaller ones. You'll have one due date, one lender, and one set of terms to abide by. There's less likelihood of missed or late payments. This is vital for small-time landlords moving into bigger ventures. You'll have a lot on your plate with the shift, and overseeing just one funding source takes some burden off.
2. One Loan Means One Cost
Getting a mortgage comes with its own costs, of course. Each loan will generally have closing fees, inspection costs, and its own terms and penalties. These tend to cost the most upfront, but they can continue to bite into your budget through the life of the loan.
By consolidating more than one rental unit into one single mortgage, you only pay one set of fees to borrow the money. If you decide to do things like refinance or borrow from an equity, you'll only have to pay for one loan for these transactions as well.
3. One Loan Opens Up Multifamily Units
Landlords with single-family homes enjoy the benefits of being a landlord, but they cannot maximize these because they must maintain many different properties and individual structures, pay multiple property taxes and insurance bills, and work with different communities.
Streamline and consolidate your multiple units by using a jumbo loan to buy multifamily property. You'll pay for just one overall piece of real estate with multiple streams of income. Even at times when specific units aren't providing income, other units in the same property will pick up the slack.
Where to Learn More
Want to know more about using a single jumbo home loan to grow your landlord business rather than spreading yourself out? Whether you want to make it easier to navigate your loans, help keep costs down, or switch to more profitable types of rentals, this move could make the process as easy as possible. Start by learning more through a consultation with a mortgage lender in your state today.