Hello everyone, thanks for the help in advance.
I am looking to purchase a foreclosed property, the property is currently listed for $104k. My last offer for $85k was rejected, the property is in a generally good state, might need a new roof in a few years with approximately $5k in immediate repairs.
After fixing the rent on the property will be at $1,200. With mortgage and expenses around $800. The neighborhood is older (1970s) and has held value for a long time. If I purchase even at full price the value after repairs is around $125k.
I plan to use another rental I have in the same neighborhood (worth $150k) as collateral for the down payment. My income is only around $1,900 per month (I am in graduate school right now).
Just wanted to get some initial thoughts on my situation? Can I get financed? Thanks!
@Dustin Jack - you should talk with a lender before offering.
They can use 25% of the rents to help you qualify, the rest will depend on your DTI ratios
You can't just use equity in another property for the down payment, you can pull equity out via a loan or line of credit but just because you have value in that property doesn't mean you can use it to buy another
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