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Hey all. My first real post here. Here is my question. I just purchased my own home (1st house) as my living residence. I am seriously ready to enter the real estate investing market but unfortunately spent all my money on my own house. I have ~5k cash left, but I am not touching it. Saving it for emergencies, etc.
My credit score in August was 755, it should be in the same area if not higher today. Can I get a loan w/ 100% financing? That's closing costs and everything else involved.
Yes, there are 100% financing loans available for investment properties. If you are buying properties to rehab you would want to look to hard money lenders in your area. If you want to buy properties to hold as rentals there are many lenders who now offer 100% financing. Especially if you have a good credit and income to support it.
~$5k in cash is not much. You should have six months
of payments for any loan sitting in the bank in addition
to your rainy day savings.
Well I do have income coming in as well. Although I know 5k in cash is not much at all. I am looking at a rental property, not a rehab. I won't hav enough time for a full rehab because of my career, but like I said I just want a rental. Thanks for the replies.
As a Loan Officer I will have to say I agree with Wesley for 2 big reasons.
Reason 1. 100% Financing means you have no equity should somehting go bad unless your buying a below market value deal in distressed owner situations. If you have 5k and spend it all but own a rental 100% maxed out equity Ouch!
Reason 2 Just becasue you can doesn't make it a smart move. You have not given enough information on the property like what's the tenancy rate, what's the utilities cost, did you have the property inspected to ensure no major repairs linger around the corner, do you have money for attorney or property manager if not can you deal with taking applications and running peoples background checks and credit reports, phone calls from the tennants. My guess is if you don't have time to Rehab you don't have time to be a landlord either. Have you gone to visit the property at night? What was it like on a weekend night in the neighborhood?
Just some food for thought, I know m personal situation is similar and I am looking strongly in to Wholesale/Bird Doging my first few deals to get some cash put aside without the big risks of over leveraging in a Volitale Real Estate market.
I actually should have specified better. I am not looking at any specific property yet, I am just in the beginning stages. I was really just curious about 100% loans. I am looking to buy my first rental w/in the year though, that's why I started posting/reading this forum.
100% Non-owner, no ratio would be the way to go. Maybe stated.
I say, if you find a great deal, go for it. 100% financing is available.