Updated over 12 years ago on . Most recent reply
First Time Rental Property--Thoughts Please!
Hi All-
Been following BP for quite some time now, and you all have been exceedingly helpful in my careful plan to jump into my longtime aspirations of being a real estate investor.
I am a 23 year old recent college graduate, sitting in my first professional job, and recently agreed to a purchase agreement for a 3 BR residential home for $25,000. Already completely rehabbed, painted, turnkey property, and even already rented out at $650/mo until June 2014.
Due to it being my first time, I am currently struggling with financing. I have explored the avenues of private money/partners, but am more comfortable starting out with a standard mortgage. However, I have been told by some larger institutions that they do not lend under the $30,000 mark, which makes my financing plan difficult.
So, I want to hear from the BP community: 1) What do you think about my deal, and 2) how would you go about financing it? Any and all thoughts are welcome. Glad to become a part of such an intelligent and like-minded real estate junkies like myself.
Most Popular Reply
The local bank I use is in east Texas. Their website is https://www.cnbtexas.com/#/home
Last year they gave me 4.0% on a five-year note, amortized at 20 years. They had to lower the rate, if I remember right, in order to make it work with the numbers, but they were willing to do that. Pretty cool!
If you can establish a relationship with the loan people in a little bank, they will often do things because they know and trust you and because they have some freedom with the lower-principled loans.