FAQs

Q: Can my rental income pay my condo mortgage?
A: That depends on the initial downpayment you make on your condo loan.  Although it is possible to purchase a (second home) condo for as little as 10% down, it is likely that you will have to supplement your income with additional funds to make your payments.  See the sample cash flow on this page for examples.

Q: I have never managed a rental property before, but I would like to try.  Can you help?
A: The emergence of VRBO and now Air BNB has made it very enticing to second homeowners and investors to manage their own rentals, even from far away.  Technology and a good local support system can help owners do a great job with this.  The Leigh McPherson Team does not manage rental properties, but we do have a strong network of clients who manage their own properties. Give us a call and we will help you answer your questions, and put you in touch with folks who do their own rental management.  If you find that doing it yourself is not for you, we have several rental management companies we can recommend.

Q: My hometown banker assures me that I can borrow money on any property I choose - Why do you prefer me to use a local lender instead?
A: Fannie Mae and Freddie Mac view condominium loans differently than a loan made on a single family unit.  Because of presumed additional risks, the structure and organization of a condominium association have an impact on a lender's willingness to lend on condominium projects.  That is, the buyer can have stellar credit and excellent income - but still may not qualify for a loan on a condominium project. 
Our preferred lenders specialize in condominium and beach property loans.  They are familiar with the different condominium buildings and know which ones are considered solid risks. Key documents that a lender will want to examine include the covenants and restrictions,  and - very importantly - the current budget.  Our local lenders are a step ahead in approving condo loans because they usually have these important documents on file and are familiar with them.  A condo questionnaire may also be required. The budget, covenants, and condo questionnaire can determine whether a down payment of 10%, 25%, or more is required, or if conventional financing can be done at all. Our lender partner, Cassandra Langley, can promptly answer any questions you may have about condo or single family lending.  See her contact information below: 

Cassandra Langley

 Find out what you qualify for!

Q:  I just sold another property in another state.  May I use those proceeds to purchase a beach property?  Can I get a break on my taxes this way?
A:  Yes!  Be sure to ask us about the tax benefits of using funds from one sale to purchase another property. And you may be eligible to exercise a 1031 tax exchange, which enables you to defer some of the taxes you may owe on the gain created by the sale.  Remember that everyone's tax situation is different, so be sure to discuss with your accountant. We have some basic literature to get you started. Give us a call and we can point you in the right direction.