investment property question

[Jason Pham]

1) Is rent out a room you live in considered to be an investment property
2) how to find reo House before puting into MLS?
3) I am in texas and my understand bank will not let you borrow money under 50K. If i pay cash, let say a small home 35k, will i get any tax advantage?

Thank all

[Scott R.]

1) Not sure, but dont believe so if its your primary residence.
2) Most REO's are going to be listed on the MLS even if you find them before, so theres really no reason to.
3) Depends on the bank, unsure where in Texas you are, but generally local banks will let you borrow less, the $50k is normally big banks, countrywide, places like that. Amarillo National Bank will allow you to borrow under 50k i know for a fact, Any time you buy a house you get tax advantages, depreciation and such.. If your talking about the home buyers credit as long as you qualify you should recieve the credit. 35000 would be 3500 in credit, keep in mind this is for your primary residence only.