We are in the process of buying a 4 bedroom townhouse in Kissimmee fl. Its not on the market but the realtor that is handling this property said that the owner wants $195,000. We dont know where to begin. The down payment of 20% and losing costs will be taken from our IRA. I know its going to put us in a higher tax. Is this a good idea. I was reading also about only 10%. Any suggestions would be greatly appreciative
If this is a rental property, the lender will likely require 20-25% down payment. If funds are coming from your IRA it should not effect your tax rate. Make sure you have plenty of additional funds in the IRA to deal with repairs/maintenance/capital expenses/vacancies, etc. as you cannot just fund the IRA easily beyond your yearly allowed contribution.
I recently purchased a new build duplex in Kissimmee, so I am somewhat familiar with the area. What is your plan for this property? Is it to buy and hold, move in yourself, summer home, flip? The truth about any deal is does numbers work based on your threshold for risk. If you provide more information I can try and assist on ideas. Best of luck no matter what.
I just read the post title for first rental, so now I feel dumb for my last post. I would start by looking at what the comps are in the area to see what you will be able to get once this property is rented. Then you need to look at that versus operating cost to run the numbers and see if they make money or not. Please feel free to reach out to me if you would like to chat further. I understand if you don't after my first reply failure. Best of luck.
If this is a rental property, the lender will likely require 20-25% down payment. If funds are coming from your IRA it should not effect your tax rate. Make sure you have plenty of additional funds in the IRA to deal with repairs/maintenance/capital expenses/vacancies, etc. as you cannot just fund the IRA easily beyond your yearly allowed contribution.
Update on my townhouse. The seller has agreed to sell the townhouse as is for a lower price. There are cosmetic repairs but the major ones are the pool pump, filter and there is mold in one of the vents. I had a home inspection while i was there last week.
Since this is an As is. Can you put contingencies in the agreement? Its in Osceola county. The seller lives in New Zealand.
You can ask for whatever you want to, but if the seller is selling as is they will probably reject your contingencies, unless, of course, they are very motivated to sell.