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Investment Properties in Washington : Real Estate Advice

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  • Home Buying270
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Activity 16
Fri Mar 17, 2017
answered:
Hello, I'm a mortgage professional.

The first step would be to get pre approved for a mortgage.

You can buy up to a 4 family home with as little as 3.5% down payment if you plan on living in one of the units in the home. You can even roll closing costs into the loan.

There is also a renovation loan programs that gives you the money to buy the home and do renovations all in one loan. You still only need as little as 3.5% down payment.

You are welcome to get in touch with me if you have any questions or would like help with this.
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Fri Mar 17, 2017
Shelbycgarrett asked:
I had attended a event just last night at the Buy Back The Block I am partnered with other businesses in the neighborhood but now I need to focus on investing in my community so yes I would…
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Fri May 13, 2016
Susan Isaacs answered:
Hi Stuart, are you still considering this? Row house definitely better than a condo. Let us know if we can help!
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Tue Jan 19, 2016
Brian F. Walsh answered:
Yes you can. Here is some information I found for you:

1. Expect to pay a higher interest rate than on a primary residence

Lenders consider loans for investment properties to be riskier than loans for primary residences, partially because people in financial distress are likely to make payments on their primary residence before their investment property so they don't lose their home. This means that investment property loans often come with higher interest rates -- 0.5 percent more is typical, though this varies from lender to lender -- than loans for a primary residence.

This higher interest rate may mean that it doesn't make sense to refinance your investment property. Use Zillow's refinance calculator to determine this, making sure that you consider closing costs, fees and how long you hope to own the property.

2. Prepare for stricter LTV requirements than with primary residences

Your loan-to-value ratio -- this is the mortgage amount divided by the appraised value of the property -- shows lenders how much equity you have in the home. So if your investment property was appraised at $200,000 and you had a mortgage for $100,000, your LTV would be 50% ($100,000/$200,000). The higher your LTV ratio, the more of a risk you seem to the lender (since you don't have that much equity built up in your property) and thus the higher interest rate you can expect to pay.

For investment properties, most lenders will only let borrowers who have a LTV of 75% or lower refinance. This is stricter than with refis of primary residences. Note, however, that LTV requirements for investment properties vary from lender to lender.

3. Know what lenders are looking for

Just as with a refinance of a primary residence, your credit score (most of the time, you will need 660 or higher to obtain a conventional refi, and above 760 to get the best rates), debt-to-income ratio (the amount of debt you have relative to your income) and income matter to getting a refinance on an investment property. But because lenders think investment property loans are riskier than primary residence loans, they will often evaluate you slightly differently.

First, in addition to the typical financial documents required by lenders like tax returns and statements detailing assets and debts, investment property owners may be required to have six months or more of monthly mortgage payments in the bank. Though investment property owners get rental income from their tenants, they may not be able to include this as part of their income if they haven't had tenants paying rent for two consecutive years or more; if they've had tenants for two or more years, they will need to prove -- with checks, bank statements and other documentation -- that the tenants have paid. Investment property owners can also expect to pay $150+ more for an appraisal than would the owner of a primary residence, and they will likely face higher LTV requirements (see above).

4. Shop around

Different lenders have different requirements and terms for investment property refis, which makes it important to shop around. Get at least three quotes from different lenders. Don't forget to consider programs from Fannie Mae and Freddie Mac : Through the Home Affordable Refinance Program (HARP), you may be able to refinance an investment property of up to four units.
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Wed Aug 12, 2015
Amelia Robinette answered:
Email me exactly what you're looking for and I can help you in fairfax village.

amelia@novahouseandhome.com
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Thu Jan 29, 2015
Jane Slate Siena answered:
Congratulations on the gift. You will need to engage a professional to transfer title to you, pending the requisite board approvals. It a mortgage exists, you will need to get financing, As for renting, you will need to check with the coop board to seek their rules and/or restrictions regarding renting. If they allow renting, you will need to make sure you comply with their procedures. The easiest way to find a renter is to engage a realtor to do it for you -- make sure you deal with someone who has experience handling renter vetting and contracts, and management if you need that throughout the lease. Alternatively, you might post a notice in the building to see if those who already live there know of someone who would like to rent. This route, however, will also require due diligence on your part to make sure the potential renter is credit worthy and can satisfy board requirements. ... more
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Thu Mar 27, 2014
Jeff Leighton answered:
I have access to a lot of off market rehab properties including 2 I have under contract this month that are going to investors. Let me know your criteria by going to my site at www.actionhomebuyers.com and clicking on "Join Our Buyer's List". I love working with investors and can add you to my buyers list. It helps that you are a contractor and can save money on the construction costs as well as being more knowledgeable than the average investor.

Thanks!

Jeff
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Thu Mar 27, 2014
Jeff Leighton asked:
I work with a lot of off-market as well as some listed investment properties. That includes fix and flips as well as buy and hold and rental properties. If you are a buyer or have buyers…
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Sun Dec 15, 2013
Jamar Camper answered:
Jason please contact me as my lender may be able to finance you depend how much you need and the debt on the property. jamar.camper1@gmail.com
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Sun Nov 17, 2013
Tracy Tkac answered:
Hello,
It would be helpful to you to speak with a settlement company before your purchase to find out what you can expect regarding the time frame for wiring funds and closing on your property.
You should consult with a real estate professional to give you an overview of the buying process and what steps to take and they will also assist you in contacting a settlement company.
Tracy Tkac
Evers & Co.
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Thu Oct 3, 2013
Michelle Buckman answered:
Hi, i would be more than happy to assist you with your search. I work with many small investors. If you would be interested in talking with me, to discuss in more detail exactly what you are looking for, please call (202) 251-8400 or email: michelle@buckmanrealtor.com

Michelle

Michelle Buckman
Licensed in DC, MD, VA
WC & AN Miller (A Long & Foster Co.)
www.buckmanrealtor.com
Michelle@buckmanrealtor.com
(202) 251-8400
(888) 624-7640 Fax

Showing the Best Views in Metro DC
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Wed Mar 6, 2013
Maureen Dwyer answered:
The address on your Form 1040 to IRS makes it official as does any other government transaction such as change of driver's license, etc. If you were to refinance the lender would automatically know because the address wouldn't match your tax return's primary address and you would held to the investor standard. DC requires a Basic Business License, good for two years, but not everywhere has something similar. The property now has a different status so it does affect your tax liability in several different ways. Check with a taxation professional for clarification on how this change affects you. While it's mostly positive news there are rules you need to be aware of. ... more
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