Financing my first Duplex

6 Replies

Hello BiggerPockets, long-time reader, first time poster!

I am interested in buying a duplex in south Texas (Rio Grande Valley) and am having issues financing the deal through traditional mortgage loans because I'm an independent contractor for 6 months (1099) and they need 2 years of income to justify giving me a loan.

It's my first deal, seller asking ~$65k and it rents for $1,200 monthly. I have great credit and can give 20-25% down w/o issue. What should I do?

Thanks!

Serafin

Did you bring up to seller about possibly doing creative financing like lease purchase or bond for deed?

I think it is going to be impossible to get a traditional mortgage without the 2 years tax returns. Your best bet is an owner financing or find someone to lend you the money and pay them back within 5 years, especially if the rent is $1200/month.

Originally posted by @Shane Jeanfreau :

Did you bring up to seller about possibly doing creative financing like lease purchase or bond for deed?

The owner is 76 and just wants out. He doesn't want to owner finance due to his age, he just wants to be done with the property outright.

Originally posted by @Ahmad Zein :

I think it is going to be impossible to get a traditional mortgage without the 2 years tax returns. Your best bet is an owner financing or find someone to lend you the money and pay them back within 5 years, especially if the rent is $1200/month.

 The owner is 76 and doesn't want to owner finance, he just wants out. I don't mind borrowing the money, but would this be through a bank then? Sorry, I'm new to this part. Is it just, go to the bank, take out a traditional loan and pay cash for the place? 

I am trying to contact one of these portfolio managers at a local credit union (non-traditional mortgage), but I don't know if it will go through. I have paperwork in with him, but he hasn't gotten back with me (3 days). 

visio financial lends privately with int rates from 14-18% with opt to cash out refi in 6months. They are located in Austin,tx really helpful just spoke with them today.

It wouldn't hurt to call some local mortgage brokers and discuss your situation with them. Not direct lenders or banks, but a broker who can shop things around to a lot of different lending sources. Try to get recommendations from other investors in your area for a broker -someone who does strictly owner occupied houses isn't the one you're looking for. How successful you may be will probably have a lot to do with how good the rest of your financial picture is.  You know how it is... the less you need the money, the easier it is to get! Keep looking, and don't take it personally when the first several say no :)

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