I am going through home showings now on multifamily properties in Portage County, OH. Since this will be my first investment property I am going through Ohio's first time home buyer program. The only stipulation with this is I would have to occupy the home I intend on buying. I have good credit - well over 700, so I was wondering if perhaps I should purchase houses through pursuing a line of credit, this way I can cover repairs if needed too. Before I make this real commitment to a load of debt I was wondering what may be the most valuable point of entry financially?
@Nzinga Hart great question. You best terms are probably going to be from a traditional lender as a primary occupant. There are loan programs out there that allow you finance repairs as well.
@Joe Fairless . It just seems limiting to have to live in whatever multifamily I buy. Especially, since I have a home with fairly low -rent.
Try talking to small local banks, and the commerial lending officer. I've had good success getting purchase + rehab funds for investments properties that way. With good credit and 20-25% down you should be able to aquire a few properties with that same bank.
The local Credit Unions and Banks are usually the best at working solid deals, especially if you are only looking to hold for 5 years or less, and then leverage it for a larger property, or multiple properties.
I had a CU that was offering 2.99% with 5% down, on a 5/1 arm. I don't plan on holding, I plan on leveraging, so this is a great option for me.
I never even thought of credit unions. there are some in my area. it just seems unfair that having a credit check hurts the score. makes it difficult to shop. The idea of having shorter term loans seems awesome .
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