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Macomb County MI Real estate

Macomb County MI real estate blog

Interested in buying an investment home in Macomb County? Have your line of cash or mortgage ready to go!

August 28th, 2012 · No Comments · tips for home buyers, tips for purchasing a foreclosure

The tables have turned (so to speak) in Macomb County over the last 6-9 months.  There aren’t enough rental properties for those who need them, and the homes for sale (if priced well and in decent shape) have multiple offers in on them within days on the market.

I’ve worked with a couple of investors over the years, and the one thing I stress to them is this:   Have your financing set up or your line of cash that you can tap ready to go.

Do not take time after you’ve found a home that is a good deal and a wise investment to begin the mortgage process.  An investment mortgage takes much more time to obtain, even the pre-approval process is lengthier.    Start gathering up all your documents (previous 2 years tax returns, last 6 months of bank statements and paystubs, any investment account statements, etc) and sit down with your bank, credit union or mortgage broker at least a month before you would like to start looking for a home.

Most investment property mortgages are going to require 20-25% down, no matter what your credit score and work history is.   There are no low down programs that I know of at this time.   (You cannot use an FHA mortgage for an investment property.  FHA and VA only loans on primary residences).

If you are going to be interested in purchasing a foreclosure you will have to have a solid pre-approval when your offer is submitted to the bank / lien holder / asset manager.  You may also have to wait a certain time period after the home is listed, as many lien holders (Fannie, HUD, etc) give preference to owner occupants during the initial bidding process.  ( Talk with your buyers agent about how to successfully bid on these homes once the investment owner period is open to general bidding.)

It is a terrific time to purchase an investment home now in Macomb County.  So many people are looking for a rental home, and the inventory for them is low.  A successful investor should be able to have a good tenant in their investment home within a week of putting it on the rental market.   Do your homework, find a good buyers agent to do the leg work for you, and have your financing or line of cash ready to make your rental property purchase as stress free as possible.

Kris Wales –  a partner for your real estate needs in Macomb County MI
SEARCH Macomb County homes for sale
Contact Kris – (586)536-5453 cell

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