Is NOW A Good Time To Buy An Investment Property?

Yes, its always a good time to purchase investment property. The problem is over the past ten years, people were purchasing investment properties like cars. Just because you qualify doesn’t mean you can afford it. A car is a depreciated item; a house is an appreciated asset and all assets must be protected. If you are considering purchasing an investment property whether cash or acquiring a loan there are five imperative things you MUST have in place.
1. Reserves - If you have a mortgage, you should have a minimum of 3 months of mortgage payments on reserve plus repair expenses and utilities.
2. Plan – before you purchase have a plan in place. (Renting/rehab/owner financing/lease purchase/hold) What are you going to do with the property? Old rule “If you fail to plan, you plan to fail”
3. Do the math - Will more money be going out then coming in? Make sure you crunch all the numbers and expenses. If an investment property doesn’t cash flow, then it’s not a good investment; it’s a liability.
4. Location – make sure you purchase in a good location. What is a good location? Well, a good location is where people want to live. If your purchasing in the suburbs, make sure the property is located near a good school district. Most families’ first priority is the school district. Secondly, if your buying in the city find a property located within close proximity to your cities central business district, cafes and restaurants, retail shops, and all the good stuff your city has to offer. The main reason people live in the city is for convenience.
5.Management - If you plan to rent, have a management company in place especially if you have more than one property. Most owners try to work a full-time job and landlord properties as well; IT DOESN’T WORK. In order to be an effective landlord, hire professionals to assist you with your property. The last thing you want is to be in court with your tenant on a workday using vacation time. LESS HEADACHES!
If you follow these five golden rules, then you're on the right track to getting a good return on your investment. YOU MUST DO YOUR DUE DILIGENCE!! A bad investment can really affect your credit and/or your liquid.

Property for RENT 5bd/3ba (Ellenwood, GA)

RENT $1600
Spacious two-story home located in quiet subdivision in Ellenwood. Over 3000 sq ft, this home has hardwoods, granite counter tops, open-foyer, formal dining/living room, media room/office, family room, large master suite and bath, 2-car garage, alarm system, fenced yard.
(404) 931-8848

Are You Upside Down and Frustrated!

Is your mortgage upside down? Don’t be discouraged, you’re not alone! If your mortgage has become unaffordable, there are options available for you. Many organizations have created programs to assist homeowners in your situation. The economic crisis has increased the amount of foreclosures, which as a result has decreased the value of your home.
Programs available to YOU:

*Home Affordable Modification Program (HAMP) was created by the Obama Administration to assist homeowners avoid foreclosures by modifying home loans to a level that is affordable. CHECK IT OUT! https://www.hmpadmin.com/portal/index.jsp
HAMP eligibility requirements:
Borrower eligibility is based on meeting specific criteria including:
1) Borrower is delinquent on their mortgage or faces imminent risk of default
2) property is occupied as borrower's primary residence
3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

*Home Affordable Foreclosure Alternative (HAFA) was created for homeowners who don’t qualify for HAMA with other alternative such as short sales or deed-in-lieu.

*NACA Home Save Program is one of the largest and the most effective organizations assisting homeowners fight lenders to adjust mortgages and interest rates to an affordable mortgage payment. https://www.naca.com/index_main.jsp
All of these programs are viable options to assist you in saving your home.
Some may wonder why not short sale? Well, a short sale impacts your credit the same as a foreclosure. You will not be able purchase another home for three years.
So, before you decide to short sale try to modify your loan.

Definitions
Upside down – the value is lower than your current principal balance
Short sale – the mortgage company allows you to sell the property for less than the principal balance and accepts the payment as paid in full.
Foreclosure – the legal process where the bank/lender takes possession of the property for non-payment.
Loan Modification – when the bank/lender reduces the principal balance and/or interest rate to a more affordable payment for the homeowner.

Verify WHO owns your loan?
FANNIE FannieMae.com/loanlookup or call 1-800-7FANNIE (7 am to 7 pm CST)
FREDDIE https://ww3.freddiemac.com/corporate/ or call 1-800-424-5401