Home Buying in 92841>Question Details

Kristie, Other/Just Looking in 77060

If I live and work in Texas and wanted to buy house in California, is it consider an investment property?

Asked by Kristie, 77060 Thu Oct 20, 2011

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Nope not unless it truly is an investment property, if you plan on occupying the property even if just seasonally you can qualify, I do the same exact thing, work in Texas have a home in Cali.
0 votes Thank Flag Link Sat Sep 14, 2013
Hello Kristie,

If you rent or lease the property out it will be an investment property as you will be producing income from it.

If you use it as a second home/vacation home it will not be considered an investment property.

Best of Luck to You,
Kawain Payne, Realtor
0 votes Thank Flag Link Wed Jul 4, 2012
Lot's of out of area people moving into Garden Grove these days. How did it go for you?
0 votes Thank Flag Link Tue Jul 3, 2012
No! that considers a second home. very simple anf short.
Its a best time to buy here in California and one of the best part of California, here in Orange County. Prices are great and rates are historicaly low. This will not last for ever Kristie, O.C will go back up again. So I think its a wise choice.
Good Luck,
Shadi Kian
Broker
0 votes Thank Flag Link Wed Feb 15, 2012
Hello Kristie,

It would be an investment property if you plan on renting/ leasing it to a tenant.

If you plan on using it as a vacation home, then it would not be considered an investment property but a second home.

I reside very close to the 92841 Zip code and have a vast knowledge of the area. If you like, I would be happy to email you listings to review so you can get a solid idea of what is available. (NO Obligation)

You can contact me at :
KawaindPayne@gmail.com
714-293-1151

Best Regards,

Kawain Payne, Realtor
0 votes Thank Flag Link Wed Feb 15, 2012
Hi Kristie,

92841 zip code is where my office located. As you already know, the 92841 area should be around less than 2 miles from Disneyland, Knott Berry Farm. So, there is a 50/50 chance that some lenders will accept it as a vacation home. Since you are a first time home buyer, I don't think any lender would accept it as 2nd home.

A main draw back for investment property is higher interest rate (about 0.25 higher). However, a good mortgage broker could help you find a good lender with good rates to offset that difference.

Feel free to let me know if you have any other questions.
0 votes Thank Flag Link Fri Oct 21, 2011
If it is not going to be your primary residences YES consider as an investment

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Oct 21, 2011
Kristi I still think you'll be fine financing as a 2nd home. If you wanted to go the investment route a duplex may also be something to consider. You could rent one unit and your folks live in the other one. That could also give you tax benefits on some, maybe not all, of your trips to California and back. You might want to include your tax advisor or CPA into this discussion.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Fri Oct 21, 2011
Hello again Kristie and thanks for the feedback. You'd be surprised how many questions we anwer daily whence we never know if our message is falling on deaf ears. Your feedback helps us help you.

There are a couple of other options you may want to factor into your thoughts. You can purchas a home with an accessory dwelling unit aka "ADU". This can be a good way to go for many reasons. When you do visit your folks you could have your own place to live and both your folks and you would maintain your privacy.

Additionally, you'd be planning ahead in the event your folks should get to a point where they might need some form of assisted living arrangements. This is becoming very common in the San Diego area and the County and most cities are very much in favor of this and in most cases encourage it.

Another thing you may want to consider is a Manufactured Home in a senior comunity. This too is a very popular way for senior folks to enjoy their golden years. Most in not all senior manufactured home developments have vey formidable recreation facilities and offer an array of amminities and services ie. pool, jacuzzi, sauna, work out facilities, bike and walking trails, club house facilities, organizied activities and gatherings, etc.

There are many very upscale developments like this throughout San Diego County. You can purchase a home in a gated rent/lease park or purchase one in a resident owned community where you will acutally own the real estate. If you do choose a resident owned community your parents could qualify for an FHA guaranteed reverse mortgage thereby allowing you to revisit your invstment capital and have enough money to live comfortably on.

In any event we would be happy to work with you in any area you're interested in. Once again if you read my former comment you know that we can help you purchase, remodel, rebuild or add a very nice "ADU" on your property be it Factory Built or Site Built.

We are also a licensed Manuffactured Home Dealer, Manufactured and General Contractor and Developer and we have been working in Manufactured Home Developments statewide for over 25 years. Please feel free to isit our websites and by all meand do not hesitate to call with any questions. 760 815-6977

http://www.onthelevelcontractors.com
0 votes Thank Flag Link Fri Oct 21, 2011
Thanks for the follow up information Kristie. There was a similar situation I did where a son helped their mother out by purchasing her a home + paying for at home care + used the home once a month for a place to stay while he visited his mother. We were upfront about the situation/intentions with the underwriter, we had to produce some supporting documentation on the situation, but they found it acceptable to do it as a 2nd home instead of an investment property. Sounds kind of similar to yours, but that was also several years ago and underwriters are a bit more pessimistic now. Since you said this would be your first home, also keep in mind that some lenders will not permit a first time home buyer to purchase a 2nd home or investment property, we do not have that limitation though.
0 votes Thank Flag Link Fri Oct 21, 2011
This will be my first home. I'm buying it mainly for my parents to live. I will also go back and forth between Texas and California about 10 times a year.
0 votes Thank Flag Link Fri Oct 21, 2011
Do you already own another property that you have a loan on that is considered a "2nd home" , this may cause problems.
0 votes Thank Flag Link Fri Oct 21, 2011
You've received some very and informative information from some very astute experienced RE professionals. We are a family owned and operated Real Estate Broker, general contractor (distressed property rehab, remodel, rebuild), developer, investment and property management company in San Diego.

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0 votes Thank Flag Link Fri Oct 21, 2011
Hello Kristie;
No it does not consider the Investment. As far as the Lending part is concern, it would consider the second home and you can get the same interest rate and other conditions as your owner occupied home. I am a Mortgage and Real Estate Broker in Southern California for over 15 years, I can help you on both ends. Please call me at 949-510-1955 for more information.
Best Regards,
Shadi Kian
Broker
0 votes Thank Flag Link Thu Oct 20, 2011
Not if you do not plan on renting it out. As Michael said, there should be a reason for the location unless it's in a resort-vacation area.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Thu Oct 20, 2011
It depends on what your intentions are for the use of the property.

If you would had exclusive control & access to it at all times and would not be renting it out on a permanent basis then it could be considered as a second home. If you will be buying a home with the intention of making it an income producing property and/or do not intend to occupy it at all then it would be considered a non-owner occupied/investment/rental property (all 3 terms are used for the same occupancy type). Some lenders require a second home to be in a resort/vacation area - but not all. You typically will be looking at a 10% down payment on a second home, 20-25% down payment on an investment property. Fannie Mae HomePath financing permits you to buy an investment property with as little as 10% down though (properties only at http://www.homepath.com though).
0 votes Thank Flag Link Thu Oct 20, 2011
Hello Kristie,

Sometimes it depends where you are looking in California to help justify the purchase as a second home. If the scenario makes sense, such as family close by, or living in a vibrant area such as LA or San Francisco adjacent, a lender can view this as a second home. If you can qualify as a second home, you could go 20% down payment versus the 25% required on an investment property. If you wanted MI (mortgage insurance) you could go to 15% down payment on loans that are less than or equal to $417,000.

Good luck!

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
Cell: (310) 995-0975
mabram@firstcapitalmtg.com
0 votes Thank Flag Link Thu Oct 20, 2011
Dear Kristie,
Yes a second home that you rent, is considered either a vacation or investment property. Downpayments and interest rates will typically be different for these types of homes.
0 votes Thank Flag Link Thu Oct 20, 2011
Typically a lender will consider it an investment property if you do not live there 51% of the time. A good loan officer can help you navigate through the ins and outs of Primary Residence vs. Investment vs. Second Home. Sometimes lenders will offer lower rates if you can prove that you travel to the area for work and need the property as a second residence.
Good luck!
0 votes Thank Flag Link Thu Oct 20, 2011
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