Buying an Investment or Second Home
Many people choose to buy a vacation home in their favorite 'go to' destinations or invest in rental income properties as another source of income. If you're in the market for a second home, a rental property or a combination of the two, the key is to be in a strong financial position.
Expenses related to a second property go above and beyond the purchase price, property taxes and insurance. There are maintenance costs that might come into play more often than with your primary residence. Also, you may be paying for a property management company if you're a considerable distance from your second home or don't have the time to manage it yourself. Many real estate investors subscribe to the 50% rule on investment properties, meaning over time, on average, the expenses on a property equal 50% of the rental income prior to paying the mortgage.
If you are in a position to invest in more real estate beyond your primary residence, talk to Angelo and team about loan options that include fixed rate, ARMs, Jumbos and more.