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I want to buy 2 properties (one to live in and one to rent out). Would I need to get 2 different loans?

I've never bought an investment property before.

What does the bank want me to have in order to get a loan for an investment property?

What percentage do I need to put down? Is it 20% for investment properties?

Would I need to start an LLC? What kind of loans would I need for each? Do I need to live in the property for a year before I can rent it out? Where can I find Nevada real estate laws regarding this? How can I purchase properties under an LLC?

Are there any good books you can suggest?


I have 30% down payment and I am able to pay for both properties even if I can't rent the property out. I don't want to get in over my head. Is there anything else I need in addition to a real estate attorney?

Update 2:

I also have cash saved just in case something breaks in the home, I've never done this before so I'm looking for all the advice I can get before I jump in. Thank you.

2 Answers

  • Marc F
    Lv 5
    1 decade ago
    Favorite Answer

    Yes, you'll need 2 loans.

    A bank will rarely loan more than 75% of the value of a property on an investment. So you'll need 25% or more down.

    You don't have to have an LLC, but I'd recommend starting one with at least one other person. A single member LLC doesn't provide any real liability benefit.

    If you get an owner occupied loan, you'll need to live in the property at least 2 years before you rent it out, but if you're planning on renting it out at all, it's probably fraud.

    Also, a bank will not loan to a brand new LLC, you'd have to have the loan in your name, and title the property to the LLC.

    If you're looking for the best resource to learn about investment property, check out

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  • Ryan M
    Lv 7
    1 decade ago

    Yes, you need two loans since you are making two COMPLETELY separate purchases. If you were unable to afford one mortgage, would you REALLY want the bank to take BOTH properties?? You would need to have sufficient income to carry both loans. Potential rental income DOES NOT count. Also, you normally need 30% down for income properties. There are no "Nevada Laws" about this, because these are BANKING INDUSTRY standards. The state of Nevada has nothing to do with this. You need to hire a real estate attorney before you do anything. Going cheap by reading a "book" will get you into serious trouble.

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  • ?
    Lv 7
    1 decade ago

    2 mortgages. The one you live in is a primary resident mortgage with the rate at 5% or less.

    3.5% down for an FHA mortgage plus closing costs.

    A commercial mortgage for the rental with the rate about 10% and you need 20% down plus closing costs. No you do not need to form a company to be a landlord

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  • 1 decade ago

    use your own cash.

    there are no laws dealing with this;it is up to each lender.

    IF your LLC is less than 4 yrs old and does not have a lot of cash flow and assets,

    you can use the LLS but you must "insure/underwrite" [be held responsible] for all

    loans made to it.........]

    Source(s): RE broker
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