2 questions? First, has anyone experienced difficulties getting approved for a home loan after student loans issues ? Second, I seen a house on MLS across the street from my home for 11k is that the REAL amount they want? I feel like I can flip this property paying cash for the home ? Any advice is appreciated.!
Absolutely student loan debt will affect your ability to get financing. It's a debt you owe just like a car, credit card or medical bill. And you can't discharge it in bankruptcy so you're stuck with it. This is becoming a big crisis and may be the next "crash".
As for point #2, never buy a property because you "feel" you can make money. If it's only $11k there's a reason. What are other properties in the neighborhood/on the same street selling for? What is wrong with the property? There are lots of $500 houses in Detroit but that doesn't mean you can make any money. If it's an older home be sure to research if there's asbestos in the home. If there is it can, and most likely will, cost you thousands of dollars just to get that fixed.
Student loans... absolutely. Students can and will affect your ability to qualify for a mortgage. Part of the mortgage process is affordability, and a key metric of this is the 28/36 ratio. Google it for specifics, but it's a simple debt to income ratio that computes your ability to repay and correlates with default rates.
11k flip... best advice on flips is to know what you're doing (or hire someone who does), have plenty of cash to do the rehab (get a contractor to do this with you) and most importantly, check your areas for recently sold comps to make sure you'll make $$ off the flip. No sense buying it for 11k, all the closing & carrying costs, plus the $X rehab into it, then only being able to sell it for less than you put into it.
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