I found one property which is in a good location and has a potential of fetching a very good rent.
Property is in short sale and asking is 60K. Estimated reno. is going to be around 20K to 30K.
Bank will require appraisal and are there any chance that Bank will not finance the property based on appraisal?
I am planning to do 30% down and planning to take care of reno. cost.
In my experience as a Realtor and Investor you will have trouble getting the appraisal to pass through underwriting at most large banks. If there are any smaller /local banks in your area, you might want to try them... especially since you have 30% to put down. For example: a few years ago I was buying a flip house that needed only cosmetic work, and suntrust bank denied my mortgage because the appraiser noted that the house had writing on the walls, soiled carpets, and screen doors with screens falling off. I had to go to a different bank to get the deal done. Hope this helps.
@Adam Drummond which local bank did you end up going with. Are there any smaller banks in the upstate that you would recommend?
@Adam Drummond , Thank you for your response. This house requires a lot of work including installing new heating system, completely renovating one bathroom etc.
I am going to make inquiries with local bank but in your opinion, does bank consider financing if i am planning do the renovation and show them the cash for the same.
From here on out I am going to use Grandsouth Bank of Anderson. I believe there's a Grandsouth bank in Greenville maybe. Lauren Thompson is the loan officer in the Anderson branch. They seem to look at your credit, cash on hand, income, and they seemed to like that I have done a few flips before. 80% ltv if I remember correctly. I also remember her telling me that you did not need a clear termite letter on an investment property (of course I do get a termite inspection done, but if there is minor damage the deal can still go through).
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.