Larger property with less down

[theastrophysicist]

Hi everyone!

This is my first post here. As someone else already said, I too have learned so much from Don`s books and reading the posts here.

My question is about buying a larger property, something around $500K, with less than 20% down. I understand that one could do that if they live in it, by signing a statement of occupancy intention. Does anyone know how long I would have to live in the property - is it at least 6 months, a year, or two years?
I`m on a low budget, and this would be a good option for me perhaps. I tried to find the info online, but no luck yet.

Thanks so much!
Waldemar

 

[PeterKinchMortgageTeam]

QUOTE (theastrophysicist @ Jun 20 2008, 05:27 PM) Hi everyone!

This is my first post here. As someone else already said, I too have learned so much from Don`s books and reading the posts here.

My question is about buying a larger property, something around $500K, with less than 20% down. I understand that one could do that if they live in it, by signing a statement of occupancy intention. Does anyone know how long I would have to live in the property - is it at least 6 months, a year, or two years?
I`m on a low budget, and this would be a good option for me perhaps. I tried to find the info online, but no luck yet.

Thanks so much!
Waldemar

You actually don`t have to live in it - there are several insurers that subject to qualification, will insure high ratio rental properties - meaning you can put down as little as 5%. Obviously, the less you put down, the more it will cost you by way of the premium.

Keep in mind that it will be very difficult to get cashflow from a property that is financed so high so make sure that you and your banker/broker know your long term financing goals before to committing to any financing like this. It will affect your ability to finance going forward and it important that you understand the implications.

Hope that helps,

 

[Nir]

I did exactly that in the past. worked smoothly with RBC. put 5% down, multiplex with a nice POSITIVE cash flow. not to mention i never lived there and to be honest never would. good luck. just ensure a positive cashflow, or more specifically the best tip I can give you.. at least 7.5% CAP.