Buying Rental 0 Down
Here's my situation.
I have a duplex scheduled to close on the 23rd.
My plan was to use a credit line from my last flip to purchase the property with 0 down. Hold the property on the credit line for 6-12 months for seasoning and then refi out with a fixed 15 yr mortgage.
Unfortunately, my banker informed me today that my credit line was closed when the last property was sold and that I would need to put up 15% to do the deal. He did offer to do a un secured LOC to get my Down Payment back after closing.
I've got no problems coming up with the 15%, but I really wanted to let the deal stand on it's on.. (I think I can make alot more money with my cash by flipping instead of rental)
When I go to refi out 6months-1yr from now.. Would it be possible to get a refi amount to cover my loan and my cash down payment????
Purchase price is $57,000 (Out of State Owner that went Bankrupt)
Sold Comps from the past 6 months puts the value at 100-120K.
Gross Monthly Lease is $1,300
Here are my Options
1) Pay cash for the down payment- Buy property with 1yr Interest only.
2) Use LOC for the Down Payment- Buy property with 1yr interest only.
3) Pay cash for the property
4) Do a 5yr ARM with 15% down.
Would any of these methods allow me to refi 100% of the original purchase price in the next 6months-1yr???
Sorry to keep bombarding with overly complicated questions...