Colorado Springs Realty Blog

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.

Follow up:

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

How to find foreclosure properties in Colorado Springs

Colorado Springs Real Estate information and services