Me and my boyfriend bought this Duplex in Anderson IN on very steep terms. We have it on contract at 6 years for $30,000 with $3,000 down and paying 10% interest. Both units are rented and it makes $800 monthly. We are paying for property taxes too, so it equals to $576.45 monthly. Then the property management takes out $80 and we also pay water and sewer, so right now we are currently negative. We should've been smarter about this property but we got eager and jumped the gun. I just want to fix it now and make it profitable. I would like to refinance it with a bank for 30 years at 6%, that would be ideal, but I am open and would like different options. I've been told private money and hard money won't lend me that because of the amount of years I want. My question is, What would be the best option for me get it the property refinanced?
@Sally Saladino you will have a hard time getting conventional lending on a property priced that low. Does it need repairs? Are rents low for the area? How did you find this property? You are correct that private money will most likely not touch this as the term and rate are not very appealing that your requesting.
@Jeff Wallenius I found the property through a website called offer up. An old well established investor was getting out of real estate and was selling his properties. They're not the best properties but they do produce a good cash flow if you buy them out right or get them on good terms. It does need repairs. Mainly cosmetic though. It'll probably cost between $10-15 thousand. So I was going to ask a bank if I can do a rehab loan or possibly get them to do both a refinance and rehab. If they can value the property as if it was already fixed. The rent is low for that area. It should be making $1,100 monthly. We haven't been able to raise the rent or kick the tenants out because we bought it as a contract sale of real estate , so the previous owner has to agree to it and he will not. So if I get it refinanced I'll own it and have control. If I could find a lender I am will to change the interest rate and the years. I could do 15-30 years at 8-10% interest but I don't know if that'd be anything a lender would be interested in. Possibly someone who doesn't want to invest in real estate but wants a better return then a 401K or CDs will give them?
This post has been removed.
@Sally Saladino are you living in the area to make sure everything goes smoothly with the rehab process? This is a difficult one, and if your losing money each month it may be better to liquidate and stop the bleeding.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.