Two in One

Many potential homebuyers have decent credit and savings to cover closing costs, but they do not have money to make a down payment. The idea of emptying a savings account to cover closing costs and down payment may not be appealing. Buyers like this should consider an 80/20 Combination Mortgage. The 80/20 combo is actually two loans instead of one. The buyer receives one loan for 80% of purchase price and a second loan for 20% of purchase price. Although these types of loans may have a little higher interest, buyers do not have to purchase mortgage insurance. When inquiring about an 80/20 combo ask about credit score, savings reserves needed, and mortgage/rental history requirements necessary to qualify.

In order to achieve your goal to become a homeowner you must investigate your choices, educate yourself and receive advice from high-quality, trustworthy professionals. Once you understand all of mortgage possibilities available you can make decisions necessary to make your dreams come true.

6. Offer improvements for rent increases. If it's worth $25 more monthly rent to a tenant, install that dishwasher. Even on a credit card you'll pay less than that per month for it.

7. Install vending machines. If your rental properties are large enough, others will do this for you for free, and give you a share of income. 8. Rent by room. A four-bedroom house might make more money if you include all utilities and rent by bedroom. This has made a lot of fortunes for investors in college towns. It does mean a lot of management, however.

9. Rent-to-own sale. Usually there's a non-refundable deposit, and higher than market rents in these deals. When renters change their minds, as they often do, you got deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get better cash flow as you repeat process. 10. Reduce expenses. Every dollar of expense you cut goes straight to bottom line. List every expense of your rental properties, and look at them one at a time. How can you reduce them?