more units will be considered commercial zoning and be harder to qualify for financing. SHORT-TERM RENTALS Condo hotels in resort communities, Airbnb and other short-term rental arrangements are incred- ibly desirable because of their income poten- tial, but they can also pose financing challenges. Lenders are particularly sensitive to zoning that will allow for short-term rentals or anything that looks and feel like a hotel. Also, while short-term rentals can sometimes be more lucrative, many lenders will not recognize that type of rental income. DOWN PAYMENT Since this is a rental property, you will need to put
down a minimum of 20% of the purchase price. If you are currently or plan to be in the market for a rental property, there are still plenty of options available. Purchasing a home or investment property is an important decision and you should be con- fident about your investment. A Mortgage Pro - fessional, like myself, will work with you person- ally to offer you valuable insight throughout the process, save you time and find the mortgage that best suits your situation and property goals. Give me a call today and I’ll be happy to review them with you.
QUALIFICATIONS To qualify for a mortgage to purchase an invest- ment property, you’ll need good credit history, be able to prove enough non-rental income to meet the obligations of the mortgage and demon- strate sufficient rental income (either through existing tenancy or based on market rental data) to cover the principal, interest, strata fees, and taxes, and ensure a bit of a buffer based on the lender’s qualification rules. NUMBER OF UNITS This will impact the type of mortgage you can obtain. For example, a property with five or
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FALL/WINTER 2022 • SPOTLIGHT ON BUSINESS MAGAZINE
SPOTLIGHT ON BUSINESS MAGAZINE • FALL/WINTER 2022
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