Real Estate Investor · Howell, MI · Member since 2009 · 37 posts · 6 votes
So I have done a couple deals in the past and am approved on a R development loan.. ( 100% with up to 6% seller concession,) have a full time job and my LEASE is up the end of May. My plan was to find a deal on a property that needs work. ( no full gut jobs, foundation, tear downs.) I can do plenty myself and would live there while I get the job done.. who know maybe two years for tax benefits and maybe find another in the process. I'm a single guy that wouldn't mind the clutter and being 50 with no whopping retirement plan I need to pull the trigger on something... anyone travel this road before?
Investor · Santa Barbara, CA · Member since 2013 · 658 posts · 315 votes
12y
That sounds like a good plan. Check out the government foreclosure websites.
HUDhomestore.com
Homepath.com
Homesteps.com
I have noticed a lot of big older homes in Michigan and Indiana which are converted to duplexes. That might be a good way to go for you. You could bring in some rent even though you are getting the benefits of being a owner occupier. Being handy and onsite would make these less trouble than they would be for a lot of investors.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y
@Dan Favor - I'm a combo investor/Realtor in small-town, rural TN. Many of our buyers are using RD loans, so I know a bit about them. Of course, things could be different in your area, so check with your local lender who got you pre-approved. But anyway, you may find out that RD loans will not be made on properties that need much work. In our area, RD sends out an appraiser who also does an inspection. There's many things that they are looking for. A typical fixer like the ones that I buy (and most REOs) will not qualify for an RD loan. I like your plan, but just do a little research into the details. You may find out that the home that you want to buy as a fixer may not qualify for your loan.
Real Estate Investor · Howell, MI · Member since 2009 · 37 posts · 6 votes
12y
Good looking out Brian, here in MI they are a bit easier on condition. " has to be habitable." scene I left the mortgage biz back in 06 when I was writing these loans, there has been a gazillion guideline changes so why should this be any different right? I'll check with some buds who stuck it out and still writing these loans for updated guidelines.. thanks for the reminder!