First post on a potential first rental property, and having no money to do so.
My grandmother passed away and now my father and his siblings own the house. They are looking to sell it and walk away, and I see an opportunity to purchase, rehab and rent. Since I am new I feel that the value having it be in the family is a good way into the rental game as if I get the money for the deal the house is mine. My question is how would I go about funding the project being cash deprived and unable to get a mortgage having just recently purchased my current home. Any help would be good thanks!
Hey Anthony. Is this a single family or a multifamily? This would make a difference on potential to get a mortgage for the property, as a multifamily typically looks at the asset itself, rather than the person taking out the mortgage. Just because you recently got another mortgage, doesn't mean that you would be turned down for another one. Especially, if the family is undervaluing the property, it may have potential for profit if you can buy out the other family members. Other funding options could include creating some kind of a partnership with the family where they let you handle the rental, and you pay them in monthly or quarterly installment payments (seller financing), hard money (doesn't sound like the smartest move for this property), or potentially taking out a HELOC on your current mortgage depending on how much equity you have in that property (but still probably not enough to buy out the family). Hopefully, this sparks some ideas for you. Good luck!
Single family. The seller financing sounds like a good option but they may just want to be done with the property. thanks for the input I will keep on it and see what I can Pull off.