[quote=earlyretirement]Thanks again SD Realtor. Your posts are helpful. These boards are a wealth of knowledge based on people’s real life experiences.
I agree with you that there is a lot of “murkiness” when it comes to underwriting guidelines on investment properties. That’s why I still like to hear about others experiences but I agree it’s better to take up these things with the lender.
It does seem to be the best way to approach this is put down 25% to 30% as you did and just finance the rest at the lowest rate possible.
As far as 6 months reserves, that won’t be a problem. We could buy the entire property for cash if we wanted to but we want to have some “powder” dry on the sidelines in case we want to buy more. But that is good to know. The mortgage broker didn’t mention about this 6 months reserves. We just sent all our bank statements, tax returns, etc. and they sent a pre-approval letter.
Yes, I meant internationally foreign all outside of the USA.
We aren’t in any rush to buy and the other thing is there isn’t much good inventory on the market. And it’s not even really a cash flow play.
The idea is to possibly do short term rentals in it, have family stay there when they come to visit but mostly to buy a nice place not too far from the beach that will eventually be our place once we totally retire and the kids are out of the house.
We have a big 5 bedroom 5 bathroom house now that we definitely will want to downsize from once the kids leave and go off to college. So part of the plan is we will move to this place and both places will be paid off by then. So we can either sell the bigger house or just rent it out and use that cash flow.
Thanks again for your helpful posts.[/quote]
ER… I think for me the problem isn’t as much as finding some sort of funding…The problem is finding good rental property candidates that float alright. Historically, we’re at near at an all time low rates…And rents are pretty high right now… And for most purposes well qualified borrowers don’t really have *that* much of an issue finding financing.
Problem is… Inventory….At least, where I would like to buy. I fear some of the best deals have already past. I really hope I’m wrong.
On the other thread, you mentioned CarmelV…But for me (and it’s mainly me). I can’t get the numbers to work… I guess it’s different one wants to plob down $300-400k in cash for a condo and get say a 4-5% return. But even then it’s a stretch
Mira M was one of the few places I could get the numbers to work out ok… But not so much right now…
