My realtor is telling me if it is not going to be a owner occupied home I have to put 20% down minimum is that true? If the 20% + rehabbing takes all my cash is it possible, as an investor, to pull out the increased equity to fund the next property? A lot of the info I have been reading on financing is turning out to be outdated and/or doesn’t apply to MD after the legislation passed within the last few years.
Is your Realtor going to do the financing part for you? I suggest that, instead of taking his word for it, you speak with actual lenders. You aren’t going to get 100% financing but you owe it to yourself to see what the LENDERS are doing. Many Realtors don’t see a really big picture and many are not overly REI savvy, nor do they ‘think outside the box’ much.
Thanks for the responses. I don’t plan on having my realtor do the financing but I’m not in MD yet and I gave my realtor the parameters of the properties I would like her to keep an eye out for and when I mentioned investing she said to keep in mind that that would require 20% down. I met her briefly while scouting the area but when I get to MD this coming week I’ll actually be able to interview a few brokers and get a better idea of the situation.
Yea that’s me lol. I do have a pretty good reserve built up and I have come up with a 2 year plan that seems very reasonable without taking into account putting anything less than 20% down. It would be nice to learn a bit more so any tips you have are appreciated. I think a lot of learning is going to take place when I begin sitting down with a few brokers.