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Refinance of Commercial Apartment Building

Answer

Generally speaking the financial institution should take 75% of leased income and use it for quailifying for your loan..... since they are interested in garauntees you will need signed / executed leases. You will also need to provide them with expenses for the building (utilities, insurance, landscaping / snow removal, maitenance etc.).  Requirements for loans and rates change often therefore it behooves you to speak directly to the loan institution (develop a relationship with the loan officer), they maybe able to help you with different loan programs including state, federally as well local monies that are available to you.Regina

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Is buying property and holding it a good investment idea?

Answer

Purchasing and holding a property can be a good investment. You should consider the 2 sides of the investment: 1. the income stream....  if the property is purchased at the right price, in the right location and improvements can be made to increase  leasing income stream,  maintenance cost are kept low, and you are able to make a profit at the end of the month after expenses.....  thats a good investment (*everyones IRS" right off / deduction" needs and "rate of return on investments" reqirements may vary)  2.  the profit at the time of sale.... estimate the time of  holding the property (7-10 years minimum) and estimate average appreciation for the area. Calculate the capital gains tax and the rate of return on the investment.  For more detail seek out a real estate professional and accountant in your area for more help.

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