We have a lot of first time homebuyers who are excited about our current market. They are anxious to buy their first home and also dream of buying investment property while prices and interest rates are so low. The problem is coming up with all the money. Investment loans require equity in your principal residence, a higher down payment and higher interest rates. Ouch!

One great strategy is to consider buying a 2 to 4 unit property. Live in one unit and rent out the others. This should qualify you for a owner occupied loan on the entire property - allowing you to get into a personal residence and investment property at the same time for less money!

Here are the quick benefits to buying an "Investment Personal Residence":

  1. Lower down paymen
  2. Lower interest rate
  3. Easier to qualify (compared with personal property + separate investment property)
  4. You're close enough to carefully manage the property
  5. Later, you can convert the entire property to investment and move to your dream home

As always, location and careful financial planning is everything! Be sure to consult with your CPA and Realtor for the best strategy that matches your investment and personal goals.

As always, you are welcome to call me personally anytime to discuss your unique situation and goals,

Nancy Moeller, CPA, Realtor

Seven Gables Real Estate

714 276-7006

 
Posted by Nancy Moeller on 01/23/2009 08:47 PM   Comments (0)   Investment Property in the Real Estate Investing Channel   investment homes  
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