Hello everyone. Ok it's been a while since my last post. I have finally decided what I'm looking for. It's. A multi fam unit in Easton P. A. For under 100k. should be able to get nice property with little work needed. It's will be a rental unit and I will be an absentee owner I'll be staying in Brooklyn. I am considering making some space available at the property for my self so I can have a place to stay if needed to go up there to take care of something. So now that I know what I want should I get pre approved first or should I have an agent take me around show me some properties first.
When it comes to getting a loan should I tell the bank that I'm purchasing the property for my self or fore income. I'm a renter now, so if I tell them I want a income property they will see me having two payments rent and mortgage. If it would be for me it would be only one payment since I won't have rent, only mortgage to pay once I I move to my new property. Thanks.
Hey @Arthur D. - you should go and get a preapproval before looking at property if you're relatively certain of what you're looking for. The last thing you want is to view the perfect property that meets all of your criteria and then miss out on it waiting a couple days to get a preapproval from the bank.
If your intention is to buy this as a rental property, then tell the bank that. This may make it harder for you to qualify, but removes the possibility of you committing mortgage fraud by lying about the occupancy.
I would strongly recommend AGAINST keeping a unit vacant for you to use on occasion. Unless you plan to spend >1 week a month there, you should easily be able to get a hotel room for the amount of money you'd be collecting. You can also write off the cost of a hotel room, but I don't know if staying in your own property has any tax advantages.
Good luck with getting started!
@Michael Seeker said it best -- you don't want to leave a unit vacant just to maybe have a place to stay to go fix something. The $500/mo in rent that you'll be collecting is well worth $200 for a hotel.
Don't lie to the bank as far as your purposes with the property. Be upfront and do your research into what products they offer for your needs.
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