Real Estate Investor · IA · Member since 2013 · 13 posts · 0 votes
Hello BP,
I am buying a property for 20,000 and wondered what the pro's opinions are.
Should I pay 20% down and get a 30 yr loan at 4% and obviously pay all the fees involved with this or
I have another property worth 70,000 and have 50,000 in equity. The current installment loan on this property for 20,000 is 3.75%.
Should I do a new installment loan for the 20,000 (new home purchase) therefore paying no 20% down and minimizing loan fees? The kicker is the loan is a 20 yr with a 5 yr balloon. The interest rate would start at 4.25%
Real Estate Investor · IA · Member since 2013 · 13 posts · 0 votes
12y
Not an incredible amount more. It is a very small house with no yard or garage. My initial analysis is about 5,000 in fixes and looking at comparable properties it would appraise for around 10,000 to 15,000 more. It just has a lot of deferred maintenance. How much more would it have to appraise for you to do the equity route?