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5 changes that affect investors in Colorado Springs

By in Investors

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

How to find foreclosure properties in Colorado Springs

Colorado Springs Real Estate information and services

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