Investment Property

When it comes to buying investment property, you need to understand the numbers. Investors have different goals. Some want to buy a single family home, duplex, or multi-family (1-4 units). Others want to buy a vacation home in an area they want to visit. They may use it from time to time and rent it out the rest of the year. Whichever approach you decide to take, make sure you understand the numbers, including the cost of financing, a down payment, repairs, etc. Be realistic about whether you can afford to make the mortgage payments for as long as it may take to find a buyer or a tenant.

Decide what you are buying. All things being equal, second homes may offer better financing, but it will depend on where the property is located and what you intend to do with it. Talk with your tax advisor about how you plan to use the property to decide whether it would be better to buy a second home or an investment property.

Getting started

You can get prequalified for an investment property loan today by contacting an Alaska USA Mortgage Company originator and scheduling an appointment or applying online. Your loan originator will review your credit report and explain how your credit affects your purchasing power.

Your loan originator will give you a list of documents that you need to bring in to be reviewed by local underwriters. Common documents requested are:

• Pay stubs for the most recent 30 days
• Complete bank statements for the last two months
• Most recent investment information, such as IRA or 401(K) statements
• Most recent two years tax returns with all supporting documentation such as W-2 forms

Remember, this is a basic list of items commonly needed. Alaska USA may ask for additional items, which are specific to your home loan.

Assemble your team

You will want to consult with an accountant who understands investment property tax strategies; a realtor who can help analyze the property and properly word the contract to include the right contingencies; a mortgage originator with experience in investment properties; and an attorney who understands asset protection to help you form the right structure for holding your investment property.

Don't forget, the choice is yours when it comes to selecting the title and escrow agency, acting as the neutral party for you and the seller.