My First Deal - am i doing this right
Hey guys, So i got a home under contract for 55k. I estimated 15k in repairs with a 110arv. The place will rent at $1100/month. And is rent ready with just a small facelift.
I am using 3rd party financing with a local bank. The appraisal came in at 70K in as-is. and 110k after repairs. the bank says they are able to loan me max $56k. 5.25% 7 ARM. 20 yr amort.
Do banks usually do this? I called the banker and he said i will just need to cover the difference at closing. Is it a good idea to borrow the full amount or put some money down in this situation.