Updated about 12 years ago on . Most recent reply
Financing Investment Property, Where to Go
I'm looking at a $70,000 home. Banks want 25% down payment, if they are willing to lend at all. I have $8,000 cash that I can part with right now. This would be my second investment property. It is a 3 bedroom house, so I can rent it out for $1,500 per month.
I am frustrated that my only options is a bank. I am uneducated about how to approach other options. I know that hard money exists, and I know that there are portfolio lenders too. But these options seem far fetched to me. I am very familiar with peer-to-peer lending, but then what? I take my peer-to-peer loan to a bank? My other investment property I own outright, I paid all cash for it. So, I could get a refinance loan? My credit score is 740, but I feel that banks are still shy about investment properties.
How does one acquire $70k? it seems like a large mountain to climb for me, but I'm dedicated and motivated to climb up there.
Most Popular Reply
No traditional lender would lend on a rental with less than 25% down. They will also want to see certain amount of reserves. So 8K is nowhere near enough to buy the $70K property. You could refi the other property you bought for cash. Thats probably the best option. As long as you have good W2 income with a 740 credit score you should be able to get about 70-75% of the value of the other property out.