How to invest in the Missoula real estate market

Real Estate Investing in todays market

We all know that the Missoula real estate market is going through some rough times, and like we always say, with change comes opportunity. One of those opportunities could be real estate investing! Whether you are interested in jumping into the real estate investing game, or trying to grow your portfolio, this market might be the time to do so. With interest rates climbing and the market slowing down as we head into the winter months, you might be asking yourself, “how do I invest in a market like this?”

House Hacking

One way to invest is what we like to call,”house hacking.” House hacking is when you get into a multifamily property and owner occupy that property. You can get a conventional loan and in some cases, even qualify for an FHA loan with only 3.5% down on a multifamily dwelling. The only catch to that is the limit to the number of units is 4. Over 4 units and you have to find commercial financing. A person can buy a 4 unit building using conventional financing and live in one of the units while renting out the other 3 units. If the deal on the property is good enough, you can have your mortgage taken care of by the other tenants and live for free or even gain a little cash flow.

Using Existing Equity

Another way to get into real estate investing is to use existing equity that you may have in your property. For the most part, if you look to find financing for an investment property that you will not be living in, you will be using a commercial loan or investment loan. Those loans typically need a 20% downpayment to get into. If you have enough equity in the home that you are currently living in, you could refinance and use some of that extra cash for your down payment.

Are There Good Deals Out There?

The government has been raising the interest rates to slow down inflation throughout the country and you might have noticed that the inflated asking price of homes are slowly coming down to offset the higher interest. Another thing going for some deal seekers is that we are heading into the winter months here in Montana and there are normally a handful of sellers that get really motivated to sell their homes. You might even find a homeowner that is thinking of selling and doesn’t want the hassle of trying to fix up the property to list it on the Missoula real estate market. There are good deals out there if you just look.

Real estate investing is a great way to build wealth and invest in your future. If you have any questions or would like to learn more about investing, please give me a call at (406) 926-6767 and lets discuss all the options you may have to build your real estate wealth.

Jeremy Williams.