I am planning on buying two SFHs in the area, one with cash and one with a loan that has a large downpayment..

Asked by Djllower, Phoenix, AZ Sun May 27, 2012

One is an investment and one will be my residence. Which purchase should I make first?

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Jennie Miller…, Agent, Phoenix, AZ
Thu May 31, 2012
Home values are starting to pop back up here in Phoenix so I would not delay too long with starting to look and write offers. I would be happy to help you and I have excellent recommendations from my clients. Feel free to review my profile and contact me as I am a full service realtor that can help you find your home, an investment home, and handle the property management for you as well.
0 votes
Jason Rush, Agent, Cincinnati, OH
Sun May 27, 2012
Djllower, Regarding the purchase of SFH; If your looking for a full service RE investment firm. IPX provides an in-house mortgage company along with a CPA, Financial Planner, Retirement Planner and attorney at your disposal to ensure you are making the right investment decisions based on your positioning, portfolio and exit strategy. I would be glad to answer any questions.
Web Reference:  http://www.AzIPX.com
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Edie Womack, Agent, Phoenix, AZ
Sun May 27, 2012
Djllower, I see that you were also asking questions regarding SFH and investments in January have you had a chance to look at any homes? Since January our inventory of homes has gone down you might want to search for both your primary residence and investment property at the same time since we don’t know how long the interest rate will stay as low as they are today. If I can help, you can reach me at 602 620 2936.

Thank you,

Edie Womack, CDPE, GRI, SFR
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Lorrie Feld,…, Agent, Scottsdale, AZ
Sun May 27, 2012
I say whichever comes up first, purchase it. the inventory is so tight now, if you find a home you would like to live in, grab it. The investment property is not as emotional and if you lose it, there will always be another one.

Lot's of luck and if you need help in your search, click on the link as this is the sane search we use as agents when searching the MLS. Just make sure to scroll to the bottom of the search and click for active only.
Lorrie Feld, ABR, GRI, SRES
Keller Williams Integrity First
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The Hanten G…, , Phoenix, AZ
Sun May 27, 2012
Have you spoken to your lender regarding this question? My advice is to first contact your lender as they will best advise you and also help you to determine how the funds should be applied. If you need some referrals please feel free to contact me back.
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Adam Tarr &…, Agent, Scottsdale, AZ
Sun May 27, 2012
I agree with most of the previous answers. But, there are more questions to be asked to properly determine the answer that is right for you. The question you asked is which one should you purchase first. There are two parts to that. Financed or cash, and primary residence or investment. A conversation with your accountant or other financial professional may reveal the best strategy. It most likely will be best to finance the first property, if only to have a clear financial picture for the lender. That being said, your financial counselor can tell you whether financing your personal residence or investment property will make more sense for your particular finances and taxes. You don't mention if you already own your own home. If you do, will you need to sell it to buy another, or will you maintain it as a rental? Many lenders are more tight on their lending criteria. If you buy your investment first, a lender may not look at another property seriously as a owner occupied vs. investment. Additionally, if you buy a lender owned property, you need to make sure that the property you choose as your primary residence will indeed be used for that purpose. Many lenders require a disclosure to be signed stating as such.

It may seem like a straight forward easy question, but there typically are more details to determine what is right for you and your personal situation. It isn't one size fits all. A proper answer comes with a full discussion of your needs and wants. I hope this is a help to you.

Adam Tarr PC
CItywide Real Estate
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Loren Hoboy, Agent, Phoenix, AZ
Sun May 27, 2012
It really should not matte from my experience, but talk to your lender.

Lenders do not rely on the money you have in the bank unless it is an IRA that you are regularly drawing down to generate a monthly payment to you. They are concerned with cash flow (income) to service the debt. and borrowing criterion like like credit score and debt ratio and Loan to value ratios.

It is best to discuss this with your lender directly to see how the facts of your situation might impact the answer. It is best to tell the lender everything so they can counsel you.

Should you need a lender recommendation, please contact me by email.
Loren Hoboy-Realtor
Central AZ Real Estate
Your Local Expert
0 votes
Brenda & Ron…, Agent, Mesa, AZ
Sun May 27, 2012
This usually depends on what your financials look like. It probably wouldn't matter, but definitely check with a good lender. It may be better to purchase the one with financing first because you will have the excess cash listed as your assets.

If you need assistance with your purchases or in getting a good lender, please give us a call.

Best Regards,


Ron and Brenda Cunningham
West USA Realty
Ron: 602-499-0694

** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley"

You can search the official, active, free, MLS IDX at our website: http://www.CunninghamHomesAZ.com
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Doug McVinua, Agent, Gilbert, AZ
Sun May 27, 2012
The Loan is really the area that should be addressed, a loan as a principal residence will provide you with the best terms on the loan, interest rate, points etc.

Great time to purchase as prices are still low in the valley.

Where would you like to live and invest? Do you know the area?
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Vivien L Big…, Agent, Scottsdale, AZ
Sun May 27, 2012
Hello Djllower,

You should buy your residence first so there will not be any issues with the Lender. It will show that you have money in your account and that you know how to save your money. After your residence has closed you can than go out an buy your investment property.

Please let me know if you require additional information or if I can help you find both your personal home and investment property. I have been a Realtor for over 14 years and know the valley very well.

Have a GREAT weekend!

Vivien L Biggs PLC
Prudential Arizona Properties

Check MLS for homes on my website
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Robin Mahle, , Phoenix, AZ
Sun May 27, 2012
With home prices on the rise, there's really no reason why you shouldn't aquire both properties at the same time. Having said that, the lender you have chosen should issue your prequalifcation letter based on your current finances, minus the funds set aside for the cash purchase.

So long as you still qualify for a loan without the cash to be used to purchase the investment property, you don't have to wait for one transaction to close before starting another.

Let me know if I can be of further assistance.

Robin Mahle
DPR Realty, LLC.
0 votes
Kelly Cook R…, Agent, Scottsdale, AZ
Sun May 27, 2012
Ideally you will want to buy the financed property first. That way nothing will be changed with your finances which could potentially hurt your qualification status with your financing.

Please feel free to contact me directly to discuss further as we would love to help you out.

Kelly Cook
0 votes
Stan Batters…, Agent, Phoenix, AZ
Sun May 27, 2012
Hi Djllower

That is great If you want to search like us realtors go to my web site and you will have full control of price, bedrooms, bathrooms and all sorts of other chose's.
Give it a try.
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Miritssa Cas…, Agent, Cave Creek, AZ
Sun May 27, 2012
You can purchase the homes using the financing described. You can buy the second home with a Conventional Loan -25% down.

When you are ready please feel free to drop me an e-mail to: milly@millycasas.com. I am an experienced Real Estate Broker servicing the area.

Thank you for using Trulia.

Milly Casas
0 votes
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