2019 Sep 5, 12:02am
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Investors typically need 25% down.
Fannie and Freddie
Investors here do 100% cash by grouping up to buy. Mostly multi unit properties.
I forget which website, but the other day I looked into the cost of PMI and it was surprisingly cheap - about 3.1% APR.For someone looking to leverage up their investments, that's a good rate IMO. e.g., for each 100k of the home, instead of making a 20% of down payment, just make $3k (3%, the minimum down payment, I think) and the other 17% via PMI17k * 3.1% = $527 a yr in interest.Then, take the 17k you still have and invest it elsewhere.
Are you saying that 3.1% PMI is the total cost of borrowing that 17% extra? Or is 3.1% PMI on top of the 4% for the 30 year mortgage?
Plus I don't like dealing with other peoples shit. Unless it's a condo on the beach in Maui haha... That's worth it.
My owner peers are >90% nearly dead so this decade is going to be interesting.