Do Investment Properties Cash Flow? Has anyone else noticed that buying new investment real estate does not cash flow? At today’s prices, which are likely lower than in the last several years, you still seem unable to find real estate that can turn a profit as a rental property. I wonder why that is?
Blog Category: investment property
If I Want To Keep My Current Property And Rent It, And Buy A New Property, I Have To Do What? If you are looking to buy a new house and want to keep your current home as a rental property, there are rules. On a Conventional loan you need to show the lender on your new home some things that you would not if you were selling your current home instead of renting it. You need to show 6 months “cash reserves”, in addition to the down payment and closing costs on the new house. And you need a 70% loan-to-value (LTV) on your current home, as evidenced by an appraisal.
There are rules related to the maximum number of financed properties you can have. These are for investment property buyers. There are some mortgage agencies, like Fannie Mae, that will not do a loan for an investment property buyer that already has what they consider to be excessive financed properties.
What if you are buying a new primary residence? Then there is no limit to the number of financed properties that you already have.
What are the best neighborhoods in DC? What makes a neighborhood “up and coming” in the DC area? You may have heard of the U-Street corridor and remember that it used to be abandoned buildings and vacant lots. Now it’s where professionals want to live, it’s trendy, and packed with diners and shoppers. Even though it took years of slow transformation, it would have been nice to own property before it got hot.