Comments on: Is buying a rental property the same as buying primary residence?

By: Landlord

Landlord — Thu, 04 Feb 2010 03:24:01 +0000

It is different, we pay a bit more (not a lot) and of course you need to pay 20-30% down depending on the type of property. If you are new at this they will require you to escrow insurance and taxes too.

By: knowitall

knowitall — Thu, 04 Feb 2010 03:03:41 +0000

No, it is much more hard to get investment property financed. If Obama wanted to get the economy moving up, he would give loans and tax breaks for investors. Then the foreclosed homes would get sold, renovated, and place back for rent or sale. As it is right now, the people who can afford these repos cannot get financing until they are fixed, and they cannot fix them without owning them!

By: sassy2

sassy2 — Thu, 04 Feb 2010 02:45:32 +0000

Much different. You need to apply for a commercial mortgage plus commercial insurance. Some lenders require a superior down payment
Start by locating a lender that is writing commercial mortgages.

By: rwa000

rwa000 — Thu, 04 Feb 2010 01:57:34 +0000

primary residence means you occupy it, leasing properties will have higher appeal rate and higher down payment

By: David Z

David Z — Thu, 04 Feb 2010 01:07:25 +0000

in effect same except you need 30% down.

make sure all offers provide that security deposits be given to you by seller because you will be responsible for returning them to tenants when lease expires.

By: golferwhoworks

golferwhoworks — Thu, 04 Feb 2010 00:41:01 +0000

the down payment and reserves are much higher for leasing homes. Down payment is 20% and reserves 6 months since you are not currently in investment property

By: chatsplas

chatsplas — Wed, 03 Feb 2010 23:46:21 +0000

NOPE. Higher appeal rate and higher insurance costs and higher deposit required for non-title-holder full property.
Often requires 20% down. So save up and keep building credit rating.