Out of California Mortgage?

Our connected society has given many people an opportunity to own investment or vacation real estate, which they wouldn’t be able to afford in California. When you buy rental property in other states the rental income will, most of the time, cover the loan payments, which is contrary to investing in California rental property. This negative cash flow (the owner is adding money each month to the rental income to cover the payments) is in addition to the downpayment that was required when the house was originally purchased. This downpayment can easily run into the hundreds of thousands of dollars. The hope of the buyer/investor is that property values will go up enough to be sold and a profit will be realized. California real estate, and Santa Cruz county real estate in particular, has always been able to accomplish this. If you made a mistake when you bought a house, it was generally a mistake for only a few years.
With property values where they are and rental prices where they are, the negative cash flows can really hinder any investment purchase around here. This is in addition to the question of “How high can real estate go?”
Enter out of state real estate investing. The downpayments are (usually) much less and rental income will (usually) cover the payments and provide a monthly profit. The downside is property values may not rise as fast as our local values. But, when you have positive cash flow, you can afford to wait it out.
Mountain Coast is able to broker mortgages for many states and recently became licensed in Arizona. We have opened an office in the Phoenix area and if you would like to discuss an investment property and want to see what the numbers look like, give us a call.

Fixed rates for owner occupied loans (under $417,000) as of 01/24/07 (a.m.) are:
(Rates quoted are with “0” points)
30 year fixed: 6.25% (APR 6.32%) payments are $2,567.45/mo.
15 year fixed: 5.875% (APR 5.995%) payments are $3,490.78/mo.