Non-owner occupied property is any type of real estate that is not in the hands of the owner, but instead is owned by an investor. In other words, a person who is not living in the property is the owner. This type of real estate investment is usually done by professionals, as investing in property can be a complex and costly endeavor.

Non-owner occupied property can be used for different purposes, such as second homes, rental properties, commercial real estate, and empty lots. For instance, tenants may rent a house from a landlord who owns the property but does not live on the premise. Investors may also purchase a property, remodel it, and then sell it for a profit. Non-owner occupied property can also be used for industrial or agricultural purposes.

Non-owner-occupied properties can often come with greater risk for lenders than owner-occupied investments. This is because the borrower's connection to the property is not as strong, since they do not live there and may be more likely to default on their mortgage. To offset this additional risk, lenders typically charge higher interest rates on non-owner occupied mortgages than they do on owner-occupied mortgages.

Occupancy fraud can be an issue with non-owner occupied properties. This occurs when someone lies to a lender, claiming that the property will be owner occupied when, in reality, it will not. Because of the higher risk associated with non-owner occupied properties, lenders are attentive to possible fraud and will often require additional verification from borrowers.

Overall, non-owner occupied investments can be quite rewarding when done correctly, but it is important for someone looking to enter into such investments to properly assess the risk. Lenders will typically require a larger down payment, additional fees, and a higher interest rate, so investors must take this into account when considering such investments. With the right strategy in place, investors can use non-owner occupied properties to build their wealth and create an income stream.