top of page

Understanding Rental Loans

At Fireside Lending, our rental loan programs allow you to access long-term financing with multiple different options to meet every investors unique plan. With our loan programs, you can use our loans to unlock your existing equity, consolidate other debt, refinance, or purchase new rental properties. The rental loan programs that we provide for real estate investment properties allow beginning and experienced real estate investors to purchase individual rental properties to expand their portfolio. Our library of loan products are flexible to meet the needs of different rental property investors. ​Like all of our lending programs we ensure a hassle free and reliable loan process for our rental loan programs. 

A blue house surrounded by nature

Benefits Of Bridge Loans

​

Speed of closing: Bridge loans provide short term financing in just a few weeks, as opposed to home mortgages originated by a traditional lender. This speed allows investors to buy time and get the sale price or permanent long-term finance solution they ultimately want, instead of being forced to settle for a deal that doesn’t pencil out.

 

Opportunities for real estate investors: Obtaining a bridge loan means a real estate investor can take advantage of opportunities they would otherwise have to pass over. For example, a borrower can use the funding to buy one property that becomes available while they are selling another, without using a contingency clause or waiting for the first property’s sale to go through.

 

No Immediate Payments: Typically lasting a few months, and up to one year, bridge loans often allow a few months before the first payment is due. This provides buyers with a little bit of breathing room to get their finances in order.

 

Short turnaround: Bridge loans are ideal when a borrower needs cash ASAP. The loans are well-suited to helping borrowers who might be struggling with cash flow and who need a boost to get them through until a second loan gets approved or until they make a significant sale. Since bridge loans often have a short term, lasting less than one year, investors who participate in bridge funding programs can expect to see a return on their investment sooner rather than later.

 

Adapt To Market Shifts: There are some scenarios in which a buyer must purchase a new home, yet may encounter difficulty selling their original property immediately. Examples may include a work-related relocation, or an unexpected lull in the market. A bridge loan offers a solution for buyers who need to buy time to sell an existing property.​

Rental Property Operating Expenses to Remember

 

In addition to the principal payments of the mortgage, there are several other operating expenses investors need to consider before buying a rental property.

 

All of these can be deducted as normal expenses to reduce taxable net income:

  • Mortgage interest payment

  • Property taxes

  • Rental taxes

  • Property management fees

  • Leasing fees

  • Repairs and maintenance

  • Capital reserve account contributions (a fund used to pay for future major repairs and upgrades)

  • HOA fees (if the property is in a homeowners association)

  • Utilities (although tenants in single-family rental property usually pay their own utilities, owners of small multifamily property sometimes pay utility fees like water, sewer, and trash and include those charges as part of the tenants’ rent)

bottom of page