Hey y'all.... looking to purchase a condo property for short term rental in a resort town. I'm thinking the purchase price would be around $400k and will finance via a 30 year mortgage. Since this would't be a jumbo loan, what type of down payment would I need? I'm hoping we could get away with 10%? Is this unrealistic?
Also, what type of interest rate should I expect. We good credit and so that shouldn't be a problem. Question is for a "second home" or "investment", what should I expect approximately? I'm thinking 6-7% and that is what I am plugging into my analysis spreadsheets. Am I off here?
Sean, if you find a good mortgage broker that knows what he/she is doing, they can have you buy that condo as a second home which only requires a 10% down payment. The catch is you have to plan on spending two weeks out of the year there. My wife and I just did the same thing with a beach condo that we now rent out as a vacation rental. Good luck, brother! Also, nice name! Good to see you got the spelling right!
yes, S-e-a-n is definitely the way to go! Thanks for the reply. Ok, that sounds great and we would definitely cover that requirement as we would plan to utilize the property personally likely around 4-6 weeks/year. so that's great!
Next question for you or anyone else reading this thread... I set up an LLC for our start up business as was advised in various research I have done. Would it hurt me if I purchase the property through the LLC??? or would I just purchase it personally and then move it into the LLC after the closing?
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