Comments on: Investment Property Loan Rate

By: Christopher G

Christopher G — Thu, 25 Jun 2009 02:13:41 +0000

I'm surprised. Bostonianinmo's answers are usually right on target. But a 3-unit qualifies as as a residential loan, not a commercial loan.

Nonetheless, you won't find 100% financing. A year ago you could, but not today. There are possibly some creative ways to use a seller second, and not necessarily from a rip-off artist.

By: Tim

Tim — Wed, 24 Jun 2009 21:48:43 +0000

I see you may be new to investing.

The type of information you prode is more as to the type of loan you are seeking. All I can say is that investment loan generally cost a percent or two more than owner occupied.

A most important part of extending credit is the customer, his credit rating, past experience. That information is critical, not only as to the rate, but as to whether you get a loan or not.

Another important aspect is the cash flow pojection for the property. You will find that generally all expenses must be counted, but only 75% of the rent will be counted.

Did you know that you may be able to acquire this property in you qualified plan.

By: snndeibo

snndeibo — Wed, 24 Jun 2009 04:33:26 +0000

I don't think you can. We're not doing modifications for anything other than primary res.

By: Shawkat

Shawkat — Tue, 23 Jun 2009 18:01:28 +0000

a) You can't "make" you lender do anything. How about YOU live up to the terms YOU agreed to?????
b) Since it is an investment property, you are not entitled to the same rates as a primary residence. Investment properties carry more risk for the bank, so they will ALWAYS have rates about 2% higher than traditional mortgages.

By: ARE BEE

ARE BEE — Tue, 23 Jun 2009 16:22:05 +0000

I own 2 duplexes and living in a part of one of them. Your mortgage interest is deductible no problem. As far as the depreciation goes there are several different things. I broke it down in the offer when I bought my 2nd duplex. When you offer or when u do your taxes list a breakdown of your investment property. say $100,000 place. $20,000 is land (can't depreciate.) $55,000 main house ( depreciates over a 26.5 year schedule, its goofy but that was a government compromise), $15,000 out buildings like garages, and sheds (I believe is 10 years), and $10,000 (can't think of the word, but it covers all the furnishings, pretty much everything that is removable, like windows, fans, molding lights, blinds, sinks, toilet you know like that) ( I again am not sure but I think it is 10 years as well, could be 7 but I think 10) either way breaking it up like this will help come tax time and keep your cost basis down. When you invest larger items into the property like a new furnace or driveway that is also depreciated (not depreciated but deducted or credited however you want to look at it) over a 10 year period.

Also the other answerer was correct that depreciation lowers the valuing for when you sell it but if you die and leave it to your children or someone else, they will not have to pay taxes on the depreciated value. If you depreciate this $100,000 house down to the $20,000 land value and hold it for 40 year and your child gets it. Lets say at that time the house is worth $250,000. You would have to pay taxes on $230,000 where as your child gets it with the cost basis at $250,000 not $20,000.

By: macressa

macressa — Mon, 22 Jun 2009 14:39:14 +0000

There is rate information on the following site:

http://www.bankrate.com/brm/default.asp

By: sweeetj99

sweeetj99 — Mon, 22 Jun 2009 13:56:32 +0000