I have been searching for a property to purchase as my first investment property. I am not a present or prior home owner, so, from what I have been told from different mortgage brokers (I live in Washington), my financing would be at a much higher interest rate if I were to purchase the home as an investment property.
So I thought perhaps I could purchase a plex property and live in one unit while renting the others out. That way, the property would be my home, but would double as an investment property.
I have been looking for such a deal, but none that have come my way via my real estate agent makes sense financially for me. In the end, it seems I would lose more than I would make. Since this doesn’t seem to be working out for me, I thought it might be wise to look into pre-foreclosures and government owned property that I could purchase as investment property. I’m not sure how this is done, or if it might make a difference in my search for investment property, but I’m not sure what else to do.
How should I proceed? My mortgage broker told me I was eligible for a $325,000 loan if I were to purchase a plex property and live in one unit. Would I be able to find something that could make me money if I go the pre-foreclosure/government-owned properties?
Some other things I don’t understand is how to tell what the price of a pre-foreclosed home is. Is it the amount of default? Who does one approach when contemplating the purchase of a pre-foreclosed property? The owner or an agent? What about a government-owned property?
Please advise…