There is a wide variety of investment properties that would need to be financed with an investment property loan. Some of these include:
- Long term rental properties. With many people exiting the housing market due to foreclosure or market uneasiness there are more and more people looking to rent. You can also consider looking for an investment property near a college or university where there will be students looking for housing.
- Short term vacation rental properties. Buy that dream retirement home now and get to enjoy it on vacations while it generates income the rest of the year! (Check with your tax professional about limitations on your own use of investment homes.)
- A home purchased near your primary residence. If you already own a home (and do not intend to sell it or rent it) and purchase another property you will need to obtain a second home mortgage or an investment property loan. In general unless you are near a resort or vacation community if your additional property is near your primary residence it must be financed by an investment property mortgage.