Purchasing Secondary Residence and Converting to Rental Property
Hello everyone!
I am currently seeking investment rental property in Las Vegas. A lender told me I could qualify for a secondary residence loan (10% down). I currently reside in Los Angeles, CA but I live with my family rent-free. I wanted to request any information on the validity of this process. Can I purchase a property in Las Vegas with a Secondary Residence Loan and turn it into a rental investment property? Any help would be very much appreciated!
Thank you!
Most Popular Reply
This is an unnecessary comment, it was an honest question from someone trying to learn the process.
Yes, this could technically be considered loan fraud. If your intention is to rent the property, you will need to put 20-25% down. This isn't much of a drawback though since it usually doesn't make sense to put only 10% down on a rental unless it is a cash cow.