It has been a crazy summer, and the weather feels right for another Q&A! Our real estate market is hot as ever, and we still get great real estate questions. Thanks to everyone who submitted a question this week!
Without further ado, here’s the end of August Q&A!
Submitted by David Willoughby.
Q: What is the minimum time that has to be spent in a home, before I can use it as an income property?
A: What a great question. Many people get confused by the government’s rules for financing and occupancy. Surprisingly, there isn’t a length of time you must live in the home! The most important factor is INTENT. An easy example of this would be losing your job. If you purchased the home with the intent to live there, but lose your job and must move, the loan requirements will allow you to convert the home to an income property. Another example would be inheriting a home, leaving your income property vacant. When purchasing the home just make it very clear what your intent is to do with the property, and you won’t run into issues with your financing. Financially, you will need 2 years of rental income before you report it for your taxes. Within the first 2 years, depreciation and other factors will keep your property from “generating income.” Most importantly, your Realtor should go over your personal goals before purchasing a property! As a local investment Real Estate Agent, I always go over such contingencies with my clients, making sure make the best decisions for your family. If you have questions about income properties, and how they will effect your family, please get in touch!
Q: Where is the best place to go to get prequalified?
A: The best place to go is Chris Clark! I help my clients get pre approved for loans all the time because of my relationship with our local lenders. I will be able to get you a great mortgage rate with no hassles! After we discuss your specific circumstances, we will approach one of my preferred lenders, ensuring you a great deal! Sometimes, the answer is really easy!
Q: What’s the best time of year to list your home on the Palouse?
A: Historically, early spring is the hottest time of year for home sales on the Palouse. However, there are often situations that make different times of year much better! Waiting for the “hottest” time of year at the expense of your personal goals is never a good idea. Your personal circumstances trump the “best time” to sell. Realistically, pricing your home right and utilizing careful marketing will make selling your home any time of year profitable. We just need to keep your family’s needs in the forefront! We can sell any time of year successfully, even if the market is “cooler.”
Q: Where can I find the best agency on the palouse that also has rental units?
A: Great News! You’ve found it! Windermere and our clients aggressively invest in the local rental market. We also love working with people that need to temporarily rent while securing funding. Having both real estate sales and property management allows us to have a unique approach to our local market. If your looking for a rental currently, please check out our property management website here. I also love helping people start planning for their home purchase! If you are looking to purchase long term, but need a place to stay, drop me a line!
This will conclude this week’s Q&A! Congratulations to our winners, and as always see you next week! If you have any other great questions please feel free to leave them on our Facebook page, and you can win a free Thomas Hammer gift card!
If your a winner please click here to fill out the form and get your card!