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If I buy under market, how long do I have to wait before I can tap into the equity?
Stephen,
The real estate values in my area are going up like crazy. I would like to buy some investor houses but I don't have much money to put down. I am also worried that if I buy another, I may not show enough income to qualify for the payments. Are there any financing options? Do I have to pay for mortgage insurance? What is the best type of property to buy? If I buy under market, how long do I have to wait before I can tap into the equity? How can I negotiate to get the best price? Help!
Zach in Richmond, Virginia
Wow Zach, that's a lot of questions. First of all, there is now 100% investor financing! You can purchase your investor property with almost no cash out of pocket. Here is some more good news:
- Most programs allow income credit for 75% of the rental rate.
- There are also "no-income verification" programs for easy qualification.
- These loans are structured as 80/20 piggybacks so there is no mortgage insurance.
- Single-family houses appreciate the fastest, although duplexes and quad-plexes offer the best cash flow.
- Most investor programs require a 12-month "seasoning" period before you can pull cash out of the property.
- The best way to negotiate a low price is to have your financing in order before you make an offer. That way you can close quickly and avoid last minute surprises.
Today, just about anyone can become a real estate investor. Please call us to help you build wealth investing in real estate
If you have a question that you would like me to answer please email me at Stephen@katzmortgageteam.com.
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