rent Archives - Commercial Mortgage

September 13, 2023

Published by Bryan Hanley at September 13, 2023

5 Super Effective, Killer, Unique Ways Real Estate Investors Find Deals

Real estate investment is a dynamic and lucrative field that offers numerous opportunities for investors to grow their wealth. However, finding the right deals is often the most challenging aspect of real estate investment. While traditional methods such as working with real estate agents or scouring online listings can be effective, seasoned investors often employ more innovative and unique strategies to discover hidden gems. In this article, we will explore five super effective, killer, and unique ways real estate investors find deals. Driving for Dollars One of the most unconventional yet highly effective methods used by real estate investors is “Driving for Dollars.” This technique involves physically driving through neighborhoods, particularly those with high potential for investment, and scouting properties that appear distressed or neglected. This hands-on approach allows investors to identify opportunities that may not be listed on the […]

May 5, 2023

Published by Bryan Hanley at May 5, 2023

What is Freddie Mac Small Balance? (For multifamily 5+ unit properties)

Freddie Mac Small Balance is a lending program offered by Freddie Mac, a government-sponsored enterprise (GSE) that provides liquidity and stability to the U.S. housing market. The Small Balance program is designed to provide financing for smaller, multifamily properties with 5 to 50 units. These properties are typically owned by individuals or small businesses and are often located in less urban areas. The program offers competitive interest rates, fixed or floating-rate loan options, and flexible loan terms to eligible borrowers. It also includes streamlined underwriting and financing processes, which can make it easier for borrowers to obtain financing for their properties. Overall, Freddie Mac’s Small Balance program provides an important source of financing for small multifamily property owners, helping to support the availability of affordable rental housing in the United States. The maximum loan amount that can be borrowed through […]

April 27, 2023

Published by Bryan Hanley at April 27, 2023

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Which Cities Have Rent Control?

There are many cities in the US that have some form of rent control, although the specifics of the policies can vary widely. Here is a list of some of the major cities with rent control policies: New York City, NY San Francisco, CA Los Angeles, CA Washington, D.C. Berkeley, CA Santa Monica, CA West Hollywood, CA Oakland, CA San Jose, CA East Palo Alto, CA Richmond, CA Hayward, CA Los Gatos, CA San Diego, CA Cambridge, MA Somerville, MA Brookline, MA Cambridge, MA Boston, MA Portland, OR Portland, ME It’s important to note that rent control policies are often subject to change and can vary in their specifics from city to city. Additionally, some cities may have other forms of tenant protection laws, such as just cause eviction ordinances, that provide additional protections to renters. Mortgage Rates Calculate Your […]

October 5, 2022

Published by Bryan Hanley at October 5, 2022

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Current Rental Property Mortgage Rates

Investing in rental properties is an approach that can develop into an income that produces long-term wealth. The interest rate is one notable distinction; it is usually higher. Even if financing a home dwelling is simpler than qualifying for a loan for an investment property and its potential rental income. Understanding home loan finance is essential whether you’re planning to buy your first investment property or already have a portfolio of homes. Mortgages for rental properties have higher rates and stricter criteria than mortgages for your permanent dwelling. Just like with permanent residences, interest rates on mortgages for investment properties change over time. Generally, interest rates for homes purchased as investments are greater than those purchased for personal use. This is because banks view investment properties as having a manageable level of risk. For this reason, not all banks will […]

October 5, 2022

Published by Bryan Hanley at October 5, 2022

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Rental Property Mortgage Rules

A growing number of people in the U.S. are looking at investment properties as the best way to boost their incomes because they prove to be excellent sources of income for ambitious investors. But first-time owners have discovered that buying a rental property is far trickier than anticipated. This is especially true regarding eligibility for that crucial supplementary mortgage, the mortgage for a rental property. A primary dwelling and a rental property are not financed similarly. First-time purchasers should be prepared to meet some rather strict standards before they can expect to be approved for a mortgage because lenders tend to be more cautious about underwriting loans on rental properties. Even though it sounds complex, it simply requires comprehension. In this article, we’ll explain how you can get a mortgage for a rental property, the options available, the requirements for […]

September 29, 2022

Published by Bryan Hanley at September 29, 2022

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Are Mortgage Payments On a Rental Property Tax Deductible?

Not quite. While the principal component of your mortgage payment for an investment property is not deductible, the interest that accrues on top of the loan is. Any costs associated with your mortgages, such as account and maintenance fees, are also tax deductible. It is comforting knowing tax deductions would offset the interest, which is a major long-term burden. Let’s look at an illustration: If you borrowed $500,000 for a property over 25 years at a 2.9% interest rate, your interest payments would be about $200,000. Although the interest is tax deductible, it is not “free money” if you intend to keep the home as a rental for the duration of the loan. Always work to get the lowest interest rate, considering any fees and how well the loan fits into your lifestyle. If you had a rate of 2.5% […]

September 29, 2022

Published by Bryan Hanley at September 29, 2022

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Can I Deduct Mortgage Interest On Rental Property?

It makes financial sense to utilize all of the available tax incentives if you’re considering purchasing a property for vacations, rental income, or a potential retirement residence. After all, you can dramatically lower the cost of having the property by claiming tax deductions for mortgage interest, real estate taxes, and rental charges. The Mortgage Interest Deduction was reduced due to the Tax Cuts and Jobs Act (TCJA), among other changes to how tax deductions operate. The mortgage interest deduction is a tax break for homeowners that occasionally applies to real estate used as a rental property. You can deduct certain expenses from your taxable income if you own rental property and receive rental revenue from it. One of them just so happens to be mortgage interest. Even with these modifications, beneficial tax incentives can lower the cost of owning a […]

September 29, 2022

Published by Bryan Hanley at September 29, 2022

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Converting Primary Residence to Rental Property Mortgage

If you’re reading this, you may be planning to monetize your primary residence. Of course, there are many tremendous advantages to turning your primary home into a rental property, but there are a few things you should be aware of before you make the switch. First, you must verify that you adhere to the guidelines set forth by your mortgage company before posting a “For Rent” sign in your yard. When purchasing a primary house, home purchasers get a better deal whether they choose a conventional loan or a government-backed FHA, USDA, or VA loan. When borrowers intend to reside in the property, they can lock in cheaper interest rates and smaller down payments. Additionally, government-backed loans like those offered by the USDA, VA, and FHA only apply to the purchase of principal residences. A second house or investment property […]