Should I try to buy a house now in a different state to use as a rental?
Husband and I currently live in florida, will be moving to Oklahoma soon for 7 months, then to who knows where (we’re a military family). ALL my family is in Indiana. My father runs a construction business (framers) and the family is used to working together, like my two brothers work for my dad and will eventually take over if that’s what they want to do, but of course construction isn’t what it used to be. In the mean time my parents are buying up really cheap properties and turning them into rentals so they’ll have decent income when my dad stops building houses. Prices in Indiana are always pretty good and with this economy, even better. I was considering looking around for just one simple, and cheap property, maybe 50,000 and having my dad be in charge like a leasing agent would for inspections after people move out and such, and of course he’d get paid for it. I really don’t think we’d have a problem family wise, but I’m unsure if I should take a leap. At that price range, with a decent mortgage rate, what would my approximate payment a month be you think? I’ve done some mortgage calculators, but I’m unsure about taxes and insurance. Is 500 a month realistic? Is it way more complicated to buy a house when your out of state residents? I want to step into a bank/go on base to find out about VA loans, but wanted to find out a little before heading in. Thanks for any info, advice.
chatsplas posted: 19 Apr at 5:11 pm
Long distance landlording can be fraught with problems.
But if your father is doing this for himself, doing one more for you, with fee, should be OK.
Taxes vary depending on community, county, school district, etc. Look at some properties listed for sale.
Non owner occupied properties are more difficult to get financed and require a Bigger down payment, and insurance costs more.
Mr. Fix-It posted: 19 Apr at 5:36 pm
Mortgage rates are dirt cheap right now and buyers still own the market…. Having family members that understand construction and renting certainly helps…As long as the rent covers the expenses–you are gaining equity in the long term….Talk to your Dad more—-I think he will support your decision to dive into your first investment—and probably offer up some very practical advice and help…. Your situation is nice—-Go for it ! Every investor starts with one property… GOOD LUCK !
golferwhoworks posted: 19 Apr at 6:19 pm
first of all you must put down 30% on investment property. Then try to get a mortgage for $35,000. No one wants to take the time to do this loan. Sorry. Just the way it is as no professional will go into this knowing he or she will in fact loose on this loan. Time is money for all of us and it takes just as long to do your loan as a $100,000 loan. By the time the underwriting and processing are done there may be $10 for a loan officer. Would you work 2-4 weeks for $10. I think not. Most banks don’t want it either. The same reason applies to them as they make the vast majority of their money in the interest earned on your loan.
Good luck with this venture