I am considering buying a small apartment in Rome, Italy. I am Italian and I am from Rome. My plan would be to rent it with AirBnB throughout the year and spend 1-2 months over summer with my family. The apartment is pretty small and in a very promising area (close to all the attractions and very well connected with public transport).
However, I have no idea how to fund this investment. Would you rather try to find a bank funding my investment in the US or in Italy (I am a US permanent resident with income only in the US but I am also an Italian citizen). Are there ways to get the necessary funding from a US bank for rental property abroad? Also, do you have any info on how taxation would work?
I found this that might help you ....
My guess is most US institutions do not want to do mortgage lending abroad unless you are very high net worth individual. You might be able to get a personal loan from your credit union or where you bank now, but that might be at higher rates than normal mortgage loan.
You might could do a home equity loan here on your current mortgage or borrow from your 401k to help fund that purchase.
Thanks so much Bruce! Very useful!
It did not even occur to me borrowing from 401k could be an option.