What is an Investment Property Loan?
To put it simply, an investment property is a piece of real estate that is purchased with the intention to generate a profit (return on investment), either through rental income or appreciation.
The term ‘investment property’ refers to anything from a condo to a multi-unit high-rise commercial property.
Investment property loans are mortgages for income-generating properties.
This includes buying real estate to rent out or to fix and flip for a profit.
A true investment property loan assumes you won’t live in the property and will rent it out for profits.
There are different ways to finance an investment property, and borrowers need to be able to meet certain requirements to qualify. If you choose the wrong type of loan, it could impact the success of your investment, so it’s important to know what each type of loan requires and how the different options work.
Buying investment property is a terrific method to diversify your portfolio, whether your goals are to buy and hold land for future development, purchase a multi-unit building, flip a property, buy a property for an older relative to live in and enjoy the appreciation when it sells, or create a passive income stream by renting the property.
Once you’ve decided to invest in real estate, done your research, and found a good deal, our Team at Budget Rates can work with you to help you secure financing for your investment property.
Questions?
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