Home prices are finally starting to rise, but not so much or so quickly that the great deals are disappearing. In fact, right now many investors have moved back into the market buying up properties that they will either rehabilitate and resell or rent out for cash flow. With interest rates still incredibly low, it’s easy to make a profit on the spread between your monthly mortgage payment and the rent you can get for the home.
But this means you have to get a home loan, which probably means you’ll be working with a bank. Right now, banks are not enjoying a very good relationship with most consumers, and there’s a lot of distrust in the marketplace — some of it justified and some of it not. It’s also true that banks would rather lend money for owner-occupied homes than investment homes, because there is less risk involved in these deals. That can make it harder to get the money you need from a lender.