INVESTING IN REAL ESTATE
Do you want to build wealth using real estate?
Finding the right mortgage when you’re investing in real-estate can be a challenge. But having the right mortgage is the difference between a stressful process and a stress-free process. It’s important you work with a mortgage professional who understands the guidelines of buying an investment property, and where a client may be restricted.
It is crucial to know that lenders look at rental properties, investment properties and vacation homes differently than they do an owner-occupied home. Whether it’s your second home or fifth home, you may find that product offerings and interest rates vary quite significantly depending on the location of your property, the condition of the home, and whether or not it’s a 4 season property.
What should you know?
Investing done right…
If you are looking to expand your investment portfolio by buying real-estate, there are a few things you should know:
A minimum of 20% down is required on all non-owner occupied purchases
Most lender policy reads that a residential borrower may not exceed a total of 3-4 rental units (+1 owner occupied home)
The property location, condition and whether or not the property is accessible 4 months/year can impact the terms and conditions of the financing
Rental offsets are available to be included in income with applicable Lenders
What should you know? continued…
How can we make this possible for you?
If investing in real-estate is a goal of yours, here are a few things to consider:
Are you sitting on Equity in your owner occupied home? Can you leverage that equity to purchase another property?
What kind of rental income will you be able to bring in on this property? Will it surpass your mortgage payment and increase your cash flow?
Can you consider renting out your current home and purchasing another owner-occupied property? This can often reduce your minimum down payment amount.
Can you be paired with a Lender who allows extended amortization schedules? This will lower your monthly payment, therefore increasing your rental income capabilities.
Will you be looking to sell this rental property within the next few years? If so, you will want to consider a penalty friendly lender who won’t eat at your profits at the time of sale.