Most folks who decide to retire in the keys do so with the idea of living in paradise mortgage free. They sell their home where the ice takes months to melt and buy their home in the keys next to Flipper the dolphin. Great idea to move down here, not so great idea to pay off the home. Seniors have a huge benefit that they are not very familiar with.
The “Reverse Mortgage” is a very powerful tool that can also be used to purchase property. The “Reverse Purchase” can help you buy your primary home with as little as 25% down and never have a mortgage payment on that property for as long as you live. Here is an example of how you can buy 2 homes and have 0 mortgage payments.
Purchase price $400,000.00 Rather than buying it all cash use 50% down.
Down payment $200,000.00 May be less dependent on age or appraisal
2nd purchase $200,000.00 Purchase rental property that generates $1200 month
There are many benefits to this transaction;
1- $14400 rental income (can pay for taxes and insurance on both properties)
2- Depreciation and interest tax deductions
3- No mortgage payment on either property
4- Future appreciation on 2 properties
The best part of the Reverse Purchase is there no qualifying requirements for income, assets or credit (excluding current bankruptcy). In today’s real estate market with property values being so low and rates at an all time low there may never be a better time to invest in real estate. Why not buy 2 and have 0 payments. There are endless ways this mortgage can provide income and investment options. Any questions I can be reached at frankl@homefinancingcenter.com or 305-923-9312.