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Rates on investment property in Florida?

A potential business partner and I are wanting to buy a condo in the Destin area. Rental income is our main focus. We have been working with a realtor down there, and she turned us on to a local lender. We were quoted 6.5% rate with 1% origination fee. He has not even gathered our credit/income/debt info yet. Is this the kind of rate we can expect? I know investment property rates are typically higher than a primary residence rate, but that seems absurdly high.
  • November 11 2010 - US
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Answers (3)

Condo financing is much harder to get than when you are purchasing a single family dwelling or a Townhome.  Also, make sure you find out the rental/owner occupants up front and discuss this with your Lender.  Seeing many investors buy up the condos, and many don't realize that the ratios are being thrown out of line with Lenders guidelines.  The current owners will be shocked when a Buyer cannot get financing to purchase a condo.  If you do not have a Veteran Agent that you trust and know is providing you with accurate info, find a Realtor who will tell you what you need to hear and not what you want to hear.  You can still be successful with investing in real estate, just need to surround yourself with folks that know their business, and do it well.  Best Regards.
  • November 16 2010
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in all likelihood the property is unwarrentable. If you can get someone to do it unwarrentable then the rate is good.

If, for some reason it is warrentable, rates would be somewhere in the 5s. 
  • November 16 2010
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I cannot give you a rate without gathering your information but 6.50% seems high. Contact me if you would like a quote.
  • November 16 2010
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