How To Finance A Rental Property In Orange County

Are you interested in investing in Orange County real state? Doing so can provide you with a substantial extra income. If you are not ready to buy a property in cash, you will likely want to know how to finance a rental property in Orange County. In our latest post, we will explain just that!

For many successful real estate investors, the first step is to make sure their finances and credit are in order. Not everyone can just go out and pay cash for a rental property they are interested in. For many investors, financing their first few properties is what will enable them to get their foot in the door. Keep reading to learn more about our tips to finance a rental property in Orange County.

Basic Tips

Check Your Credit

Make sure you know your credit score and have taken steps to improve it if necessary. People with a score under 740 will see higher interest rates when taking out a loan.

Think Small

Small, local banks, credit unions, and lenders can sometimes help more than a big bank can. They will have a bit more flexibility and may look at you and your background than a large corporate lender would. They will also have more interest in investing in the local community.

Loan Types

FHA Loan – Owner Occupied

A great way to buy your first rental property is to purchase a property using an FHA loan. These loans are for properties with 1-4 units and require a much smaller down payment than a conventional loan would. By utilizing an FHA loan to purchase a multi-family property, you will be able to use the income you receive from the other units to pay off the mortgage on the property, you will likely be able to live for free as well.

Conventional Loan

A conventional loan can help you get the cash you need but will require a much larger down payment. You will likely be putting at least 20% down, so save up accordingly.

Other Types

There are other types of loans investors can use to finance a rental property. Some of these include a short-term loan, a portfolio loan, a conforming loan, or a Balance Sheet loan. Each will have different rates and repayment plans.

Financing Through A Self-Directed IRA

When your money is invested in a self-directed IRA, you will have the ability to invest in things other than stocks and mutual funds. If real estate is approved, you can use funds from your IRA to finance your rental property in Orange County. Of course, you will want to talk to your CPA first to make sure it is a smart financial decision.

Other Points To Consider…

Additional Costs

When buying real estate, there is more to consider than just the price you are paying for the house. If using an agent, you might have their fees to cover. You may also be faced with a percentage of the closing costs. Most loans will require an inspection and appraisal, along with the payment of the loan origination fees.


Buying with tenants in place will help you immediately generate income from the property. You won’t have to deal with screening tenants, managing leases, or collecting security deposits right away. You will be able to avoid immediate rehab and repair costs as the property is probably in pretty good shape with tenants being there. It can help ease you into the routine of being a landlord, without having everything thrown at you at once. Of course, you will want to make sure the tenants in place have been properly screened, and have a good history of paying their rent on time.

Are you ready to finance a rental property in Orange County? When you are ready to buy, we are ready to help! Contact us today to learn more! 949-625-4533


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Access Local CALIFORNIA Investment Property Deals...

Handyman Properties - Fixer Uppers - High Equity. *These are not on the MLS - Many are below $300k. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.