Monday, April 09, 2007
Thinking of Buying Rental?
Now is a great time to consider buying an apartment building. Buying a 2-4 unit apartment building will still allow you to qualify for a residential loan and it will allow you to buy a building in a neighborhood that you might otherwise not be able to afford. You can apply the rental income to your mortgage payment. This will allow you to qualify for a higher mortgage amount. For example if you are collecting $1000 in rental income each month your mortgage company will consider $750 (or 75%) as extra income that you make each month. The rental market in Chicago has been improving over the last few years. Every building that get converted to condos is one less rental property on the market. The city has had a net reduction in rental units over the last few years. Interest rates are still at an all time low while rents are increasing. That makes this a great time to buy rental property.