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Someone pointed out to me that mortgages on investment properties typically have worse terms and/or are more difficult to obtain than mortgages on vacation home
by lastofthemojito 5y ago
Someone pointed out to me that mortgages on investment properties typically have worse terms and/or are more difficult to obtain than mortgages on vacation homes.
So if you wanted to bet on real estate in Sonoma going up but you don't have the funds to finance an entire property, this is a way to make that investment (just tell the lender that this is your "vacation house").
Of course that also brings up the question of how easy it'll be to find a buyer for your 12.5% of an LLC when the time comes for you to cash out.
- vineyardmike 5y ago>mortgages on investment properties typically have worse terms and/or are more difficult to obtain than mortgages on vacation homes. People typically rent out investment properties. Its pretty rare to invest speculatively by just buy/hold without using the property.
- Traster 5y agoNot only that but you're paying exorbitant management fees (they're gonna clean that sucker every weekened top to bottom whether you want to live there or not) and potentially putting yourself on the hook for ever increasing fees too. That alone absolutely kills the investability aspect.