I moved from Michigan to Pennsylvania about 2 years ago. When I could not sale my house I decided to rent it. I have it rented out, but I still pay about $150 out of pocket each month (not bad). Here is the problem….I have a ARM that will adjust soon and I need to refinance. Since it is an now an investment property rates are more and rules are different. I have discussed what will be needed with several banks and they all said I should expect to bring 10-15k to the table. Now I’m considering listing it at a low ball price and take a loss just to get rid of it. If I loose $10k on the sale at least I won’t have to worry about making mortgage, condo assoc.payments. Plus taxes, repairs and management fees. If I pay the mortgage down I do still have to worry about all of those thing, but I will still "own the property" and get a bit of a tax break. Additional info…this is the only property that I own. My mortgage payment and other fees are low enough that I can pay them even when the property is not rented. So do you think I should sale or refinance?

Personally, I would sell. If I need to lose 10 to 15 thousand dollars, I would rather just be done with it. It sounds like a significant headache to have a rental property in another state. It means filing taxes in that state, it means having to maintain a property that you don’t get to see very frequently, etc.

It’s also in MI. Nothing against MI, but it has been hammered by the foreclosures and I would guess the value isn’t going to recover quickly.

This would also allow you to consider buying in PA (in a while).

good luck!

Please give me any advice you have on property investment,
thanks

It would help if the type of property was known.e.g. Rental, bare land,etc. The old adage of location ,locatio,location is so true. The best bet is to buy an unpolished gem in the best possible neighborhood. That way you have a large upside.Expect to pay a fair price but do your homework.When you become the owner you should form an LLC for each property that you own.This protects you from losing your entire estate in the event of a lawsuit that goes against you. Buy close to home so that you may oversee everything. There is nothing wrong with hireing a property manager as long as they are licensed,bonded and you are comfortable with them.If you are handy with a paint brush and hammer so much the better. There is much debate on the subject but I think now is the time to buy. Interest rates are’t going any lower. Best of luck to you.

I’m a bit confused about how investment property loans work. Do they need to verify that you could handle the mortgage on your own without any rental income? Or do they take the potential rental income into consideration?

We just bought our first house (primary residence) in February…a fixer upper, and we’ve made a lot of home improvements, so we’re feeling a lot more confident about the buying process and how to make improvements. I have taken my state’s real estate course and plan to become licensed as an agent. I work for a property management company so I work with tenants and rent collecting (and sometimes evicting) on a daily basis.

We want to buy an investment property, but we had a hard enough time getting a loan for our own home (fairly good credit scores, hovering in the high 600′s/low 700s) but my fiance is self-employed, which scared off a lot of lenders. However we’ve faithfully made our mortgage payments on time for the last 8 months, and paid a little extra toward principal, so hopefully that makes us look a little better?

In our area, the types of homes we would probably be looking at for potential rental properties are in the $170-$200k range. We expect to have about $15-$20k as a downpayment. Income in the $40-60k range annually, depending on how my fiance writes stuff off on his self employment taxes.

Is this remotely a realistic idea, or would we need much more of a downpayment? Thoughts?

Landlord said: "Also, sorry, but there is NO WAY you can charge between 3 and 5k a month rent on cheap 170-120k property. Not in the real world."

I don’t know what you mean by this. $170-$200k in our area is not "cheap" for a single family home or duplex. Median home price is $200k or a little under.

Also I don’t know what you mean by getting 3-5k rent. I see single family rental homes in our area going from $1000-$2000/month depending on size and amenities.

Yes, you need enough income of your own to cover the mortgage if it is vacent.

You can include 80% of the rent if, and only if, the unit comes with a lease holder.

You are also under estimating your down payment. You need 25-30% down, it is not like a house where you can risk next to nothing. Since your credit is not very good (sorry, but I would die if mine were that low) you can expect a 30% requirement.

Also, sorry, but there is NO WAY you can charge between 3 and 5k a month rent on cheap 170-120k property. Not in the real world. I do not know whos tall tales you were hearing, but you are not even close to reality.

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Jumping Through Hoops for a Signature

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Capital Direct Lending presents author Douglas Gray on using the equity in your home to finance a mortgage helper.

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Advanced Real Estate Development and Investment skillfully outlines the various phases of the real estate development process and addresses some of the most important issues associated with this discipline. Using numerous illustrations and anecdotes, this book takes readers through the development process, from historical considerations to idea formulation to financial feasibility to asset disposition and covers the entire cycle of real estate development for various property types. Filled with in-depth insights and practical advice, this reliable resource will help readers gain an appreciation of the functional skills necessary to be successful in this field, and enable readers to gain a firm grip of several often-overlooked (but equally important) aspects of commercial real estate development. Stephen P. Peca (New York, NY) is a Managing Director of Concourse Realty Group, LLC and is an Adjunct Assistant Professor in the Real Estate Institute of New York University.

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Business Valuation Book Gordon V. Smith, Russell L. Parr, John Wiley & Sons, 864 pages April 2005 From the Publisher: This book is designed to simplify the process of attaching a dollar amount to intangible assets, be it for licensing, mergers and acquisitions, loan collateral, or investment

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i reside in North Bergen, NJ 07047 i’m trying to refinance to purchase an investment property but i don’t want to lose my low APR rate for a higher rate. i currently have a 5.25 on my 1st mortgage and a 5.8 on my second. lenders now are charging ridiculous closing cost $3,000-6,000. what is the best way to purchase an investment property without messing with my current loans?

If you have good rates and can afford the payments, I don’t see how refinancing would make it any easier to purchase investment property. If you have cash on hand of course you could use that, or take out equity on your other home.

Shop around for the best terms and programs. You’re probably going to have to put something down, so if you can’t get the cash, start saving.

I want to spend around 300 to 400 thousand on a property.

If you are looking to purchase or re-finance your home E-mail : Ken.LifeMortgage@gmail.com any questions you may have. We are a nationwide company with alot of programs for all different people, in all different situations. It never hurts to ask