Kenosha Landlord Association to meet on Wednesday

By Lynn Sommers Last updated Oct 16, 2022

The Kenosha Landlord Association will meet Wednesday, Oct. 19, at the Fireside Restaurant, 2801 30th Ave.

Attorney Gary D. Koch from Petrie+Pettit, SC, will be the guest speaker addressing the types of notices terminating tenancy, service of the notices, common pitfalls and a brief overview of the court procedure. He has been practicing law for over 20 years, representing landlords for nearly 15 years, and specialized exclusively in landlord/tenant law. He is licensed to practice in all Wisconsin state courts, the Eastern and Western District of Wisconsin Federal Courts, as well as the 7th Circuit Court of Appeals.

The meeting pen to the public, however, there is a $20 fee for non-members.

This meeting is offered in person and via Zoom. Appetizers and networking begin at 6:30 pm with the meeting at 7 pm

To attend you must register in advance by clicking the following link: https://us02web.zoom.us/j/84413425424?pwd=bE0wVS9lNEc5TjJrRkd0OU5RUW5Udz09

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After registering, you will receive a confirmation email containing information about joining the meeting.

Where are people buying investment properties?

Where Are People Buying Investment Properties?

Photo Credit: ppa/Shutterstock

In the heated residential real estate market of the last two years, one factor contributing to fierce competition and rising prices has been real estate investors. While many prospective homebuyers were drawn into the market with historically low interest rates and strong savings and investment returns, they have frequently found themselves outbid by corporate landlords and investment firms. These firms have the wherewithal to pay cash for homes and greater ability to absorb risk when purchasing properties than individual buyers.

Institutional investors purchased a record 18.4% of all US homes sold in the last quarter of 2021, up from 12.6% in the last quarter of 2020. While real estate investment has reached new heights over the last year, the number of homes purchased by investors has grown steadily since the collapse of the housing bubble and Great Recession in the mid-2000s. Between appreciation in home values and steady income from rents, residential real estate has proven to be an attractive asset class for major investors.

These attributes can also make real estate a desirable investment for individual investors and small landlords, especially those who have cash to make a purchase. But for investors who require a mortgage loan to buy a rental property, financing can be more difficult to come by.

Qualifying for a mortgage on an investment property is more difficult than for a principal residence, which is one reason why a majority of rental purchases are made with cash. While the typical property value for an investment purchase is lower than for a principal residence, lenders typically require larger down payments and lower debt-to-income ratios and command higher interest rates on the loan. In 2020, the mortgage for an investment property had a median down payment of $60,000 and a median interest rate of 4.0%, compared to $50,000 and 3.1% for a residence—even though residences had a higher median property value.

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Investment properties are cheaper with a larger proportion of the cost in the down payment

For investors who rely on financing to purchase property, most of the top locations for investment properties are found in the South. Arkansas (19.4%), Oklahoma (18.5%), and several surrounding states have high shares of investment property loans as a percentage of all purchase loans. These states have some of the lowest costs to purchase real estate in the country, which makes them more easily attainable for prospective real estate investors.

Arkansas and Oklahoma are investment property hot spots

At the metro level, cities in these states are also among the most popular locations for mortgaged investment properties. But the list also includes some pricier cities where property values are growing rapidly, like Los Angeles, Austin, and Nashville.

The data used in this analysis is from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act. Only conventional home purchase loans approved in 2020 were considered. To determine the locations where people are buying investment properties, researchers at Stessa calculated investment property loans as a percentage of all purchase loans. In the event of a tie, the location with the greater total investment property loans was ranked higher.

Here are the US metros where people are mortgaging investment properties.