Best bank loan for buy and hold with low down payment?
My wife and I have been trying to teach our oldest son responsible money management, savings, and investing. He joined the Army this past summer, and has since been blowing his money on frivolous things since, like most teenagers of course. So we've been thinking, whats another good way to insure he has some type of financial bonus if/when he decides to get out in 4 years, and this is what we came up with.
We've been talking to him about buying a rental. Of course if his credit and income allow. Prior to joining I had him get a CC to start building credit, and he has, paying on time, low balance, etc. Coupled with the super cheap houses for sale in our area, we think he would qualify. The price range we're thinking is 20-40k, there is an abundance here. We also would have to look into power of attorneys to take care of all of this on his behalf.
Of course he wouldn't be able to use his VA, as its' not a house he would be living in. But what other loan possibilities are there? The houses we're looking at are fixer uppers, and I don't know how things like homepath or other programs work with investment properties.
The broad plan is for the rental to be a nightly/weekly/weekend rental duplex preferably in a certain area, as there's a need here because of race season, and the lakes. That way, when he comes home on leave twice a year, he can black out those dates, and have his own 'home' to stay in if he chooses.
The whole point of this is to give him the jump start in life my wife and I wish we had as young (financially uneducated) Soldiers years ago, and if he realizes the possibility of REI, and has a potential goal and path when his enlistment is up.
Thanks guys