Looking to buy first investment property in the next year
I currently live in the bay area so unfortunately buying a place out here is out of the question for me but purchasing a 2br+ / 2ba place in my home town (about 2.5 hours away) is quite reasonable.
My financial situation is pretty decent:
- $1xxK salary
- 760+ credit score
- $5xxx left on student debt, should be payed off in ~28 months
- At the end of each month I'm able to save about $600 towards the downpayment
- Currently have ~$36K in liquid assets to use for downpayment
My current goal is to have $40K saved up before I start looking, so I have a few months to go.
My questions are - since this will be an investment property is there absolutely no way to avoid the 20% downpayment requirement to avoid the pmi? How much extra over the $40K should I expect to need in order to close the deal (Assuming $200K purchase price)?
Any other advice on purchasing an investment property would be much appreciated.