Financing in Newark NJ
Hi all,
I'm looking at purchasing my 1st rental property in the North Ward of Newark, specifically a duplex for 100k at most including rehab. It's been about a month now that I've put the word out to a broker and have come up with nothing to date, but there are two bigger issues I was hoping someone could lend some feedback on:
- I have received a pre-approval from the bank that holds my current mortgage, and I've been advised they require 25% (as most large banks). I was hoping for 20% as this puts me above what I was looking to spend and suggested a 401k loan which I am not interested in doing.
- My broker recently told me that deals at the price are rarely accepted on financing contingencies mainly due to appraisals. He says banks have become really strict on fixer uppers. Has this been a common problem for anyone in Newark?
It seems my options are to either look outside NJ possibly or hold off on any investments for awhile.