October 13, 2008 · Investors
5 changes that affect investors in Colorado Springs
1. Fewer properties- Investors were allowed up to 10 investment properties in the past but since mortgage restrictions have tightened up, investors are now only allowed to finance a total of 4 investment properties.
2. Extra Fees- Freddie Mac and Fannie Mae will be imposing additional fees to investor loans due to the current real estate market.
3. Capital Gains- As a result of the recently passed Housing Stimulus Bill, investors who convert their investment property into their primary residence may have to pay taxes on a portion of their capital gains. For more information: H.R. 3221
4. 1031 Exchanges- Investors still have flexibility when making a “like kind” exchange of two properties. For more information: Section 1031
5. LLC Restrictions- Freddie Mac is no longer refinancing loans for properties in an LLC. For more information: Loans and LLC’s
*If you are an investor in Colorado Springs, refer to your tax accountant to find out how the new changes in legislation may affect you.
Additional Reading:
Buying a fixer upper in Colorado Springs - Part 1
Buying a fixer upper in Colorado Springs - Part 2
Written in 2008. Prices and programs may have changed since; ask Patricia for current numbers.