Worth it or leave it alone?

Question

The rental property I am looking to purchase is as follows:  3/2 SF, purchase price and rehab $75k, piti~ $520/ month. Will rent for $1050 - $1100. Financing is 10%dp 30yr fixed with current rate and no pmi. Seems like a solid property to me. Home is 15 years old.

Account Closed · Answer

Michael,

It's worth it in my book. If I live there, I'd buy it in a heartbeat.

Bill Gulley · Answer

Should have known it was a HP deal, I'm familiar with it, so yes it can be a good deal I found closing costs rather high compared to my area. CLTV is combined loan to value where you could have a 90% CLTV, a 80% first LTV and a second 10% LTV for example, that keeps you from PMI on conventional deals. Good luck with your deal! :)

Michael Baradell · Answer

Bill, not sure what CLTV is but this is a Fannie Mar Home Path loan. It's a great program the only problem is, there is a 15 day grace period that is for owner occupants only. Investors only get to offer after that period. This home is not out of the period yet so I'm crossing my fingers it is still available.

Bill Gulley · Answer

Sounds good Michael, is that a CLTV at 90%, or where did you get 90% without PMI? :)