Abington, MA · Member since 2016 · 30 posts · 4 votes
Hi All,
I am currently in the process of trying to make my first real estate deal. I am looking to buy and hold a single family home in Maine with 6 bedrooms. Conservitively it should cash flow about $600/month.
However, I am having trouble getting financing since the loan amount would be under $100k. The owner passed away and his children are now trying to sell it. The ask price is $110k but the owners are willing to work on that based off of work needed. I am a plumber by trade (work as a plumbing engineer) and I have walked through the house and it doesn't appear to need much work at all. I have about $10k I could put towards a down payment.
Do you think that this would be a good place to try to do seller financing? Any other ideas?
Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
Most lenders will do loans as low as $50k. If your lender is not willing to go lower than $100k you may want to shop around. Regardless, if owner financing is an option that may be preferable to any bank loan.
Abington, MA · Member since 2016 · 30 posts · 4 votes
9y
They would be willing to lend but they would require me to put down 25%, the banker was telling me that it was because of some new fannie and freddie laws within the last couple of yeads.
Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
20-25% down is pretty much the standard if you aren't going to owner occupy. If nothing else see if you can get the seller to hold the 25% while you pay them the other 75% with a bank loan. A 5yr note at a 20yr amort with a balloon at the end may be attractive to them. Each situation is different, though, so create something that works for you.