[quote=spdrun] . . . i.e., as a mortgage broker told me, if the deal makes sense — income less vacancy rate is 1.25x expenses at prevailing mortgage rates, then he’ll find someone to finance the deal.[/quote]
I don’t doubt that an individual non-resident investor shopping in AZ or FL can find financing for a 1-4 unit property or even a small apt complex. But if I wanted to buy another personal residence for my family in the coming years, I would be concerned about my out-of-state rental unit(s) being dinged as “negative cash flow” by my lender which I showed as “depreciating” on my tax return, even if they actually had a net positive cash flow.
Can you rephrase your statement which I bolded, spdrun? And by “prevailing mortgage rate,” do you mean the actual mtg rate of the mtg currently encumbering the rental OR the current prevailing rate on another mtg the investor is trying to take out? I don’t fully understand what you’re trying to say here.
