Being a landlord is one of the most reliable and easy ways to enjoy a constant income without necessarily requiring too much maintenance, either physical or financial. With the right strategy, and the appropriate sense of financial responsibility, letting your property work for you—while providing a place for people to live—is a win-win situation for everyone.
But the most fruitful investments are the ones that start out slow and eventually grow. Just like planting a tree, what seems like a lot of expense for relatively little gain at first eventually bears fruit regularly with profit far in excess of the original investment. It just takes patience, vision, and, with a little bit planning, a longer term loan, such as a 30 year private rehab to rental program to take a project with promise into something of real value for you and the residents that benefit from another living space.
Doing It Right
A rehab to rental loan is a great way for people with a solid vision of the future to realize that vision within one single financial package. If you have an idea for a building or other project that needs to be repaired, rehabilitated and renovated, but then want to take the next step to bring in renters, having two separate financial processes for this is very work intensive, requires a lot of bureaucracy and can ultimately slow down your progress at many stages of the project.
With a single loan that takes all of your progress into account over the decades, you can concentrate on the project itself, devoting energy to making sure the results are good, rather than periodically diverting resources to ensuring that the financing continues, and this gives you a great opportunity. With this kind of stable, long term financing, you have more incentive to create a quality piece of property.
Quality Is Also Long Term
With a 30 year loan, you can ensure that not just renters but you, as a landlord, get value for money from the investment. With that kind of long term vision, you, as a landlord, don’t want to have to constantly maintain a building with repairs to the plumbing, electrical wiring or flooding in a basement. Being in control of a long term, 30 year loan, means you can do things right the first time.
You can make sure the foundation is in good order as you rehab a building, make sure the plumbing is built to last, and that the internal structure is repaired and reinforced to withstand many more years of use. In taking the time to do this at the earliest stages, you avoid the trap of trying to save money in the early stages, and actually costing yourself more money in the later stages, when you should be sitting back and enjoying the steady income of rental money.
If you have the ambition and vision to sustain it, a 30 year rehab to rental loan can be the start of a lifetime of profit.