Carlisle, PA · Member since 2019 · 7 posts · 0 votes
I have lived in the property that my landlord wants to sell right now. I have done my research on the property and there is cash flow coming out the property.
The property is generating $2,050.00 per month. The monthly cost for insurance, school taxes, county and borough, water, mortgage. payment I would be looking at about 1500.00 per month.
I have other cash flow coming in from my own business to support the property.
My landlord wants to unload the property for 155K. My bank wants 37.5K down or 25% down. I do not have the down payment.
Is there anyway that I can creatively make this deal happen?
Investor · Easton, PA · Member since 2019 · 46 posts · 19 votes
7y
@Gary Grant why do you think you need a hard money lender for this scenario? If you have decent credit and will continue living there for another 12 months it sounds like you can get an FHA loan on the property. If it needs work you can get a 203k loan- both are 3.5% down for up to 4 unit properties.
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
Banks want 25% down for residential (1-4 units) non-owner occupied investment property.
Depending on your income, credit, outstanding loans you may be able to put down as little as 5% only if you plan on living in one of the units. Talk to different banks and mortgage brokers because there are various mortgage programs.
I have lived in the property that my landlord wants to sell right now. I have done my research on the property and there is cash flow coming out the property.
The property is generating $2,050.00 per month. The monthly cost for insurance, school taxes, county and borough, water, mortgage. payment I would be looking at about 1500.00 per month.
I have other cash flow coming in from my own business to support the property.
My landlord wants to unload the property for 155K. My bank wants 37.5K down or 25% down. I do not have the down payment.
Is there anyway that I can creatively make this deal happen?
Another option, if it makes sense to update it and do some work on ot you could purchase with higher leverage flip loan. Once repaired refi out, if there is enough equity you can refi no money out of pocket.
Investor · Easton, PA · Member since 2019 · 46 posts · 19 votes
7y
@Gary Grant why do you think you need a hard money lender for this scenario? If you have decent credit and will continue living there for another 12 months it sounds like you can get an FHA loan on the property. If it needs work you can get a 203k loan- both are 3.5% down for up to 4 unit properties.
Rental Property Investor · Rochester, NY · Member since 2013 · 162 posts · 127 votes
7y
@Gary Grant
conventional loans is the best option if you do plan to remain in one of the units for the next 12 months. As other shares above, that is excellent guidance.