Financing Unwarrantable Condo
Hello,
I own 3 out of 9 units in condo complex (it's a single building complex). Because that is 33.3% of the units, the complex is no long warrantable according to Fannie Freddie guidelines. In the past, I was able to get portfolio loans from Credit Unions to finance my purchase of the units.
There are 2-3 units coming on the market in the near future that I would like to grab as it'll be low overhead and I know the market rents, the building, and am on the board of the HOA.
That said, I am having trouble getting financing. They'll be around $150k each based on current market prices. I'm happy getting one or two of them for the time being. I can't get conventional financing or any more portfolio loans (not a primary residence).
Any ideas on how to finance? I have a HELOC available with $53k, but not sure what the best approach is to get the other $97k. I'm going to have to think outside the box on this one (maybe credit cards and/or hard money, but those are all very expensive). With decent financing, these will be cash flow positive. I appreciate any feedback/thoughts you can offer.
Funding Strategies (some brainstorming)
- Down Payments/Cash
- Self
- Cash from checking/savings
- 401k withdrawal
- Sell property
- Sell car
- Credit card advances
- Banks
- Personal Loan from
- HELOC on existing property
- Home Equity Loan on existing property
- Refinance existing property
- Other
- Hard money lender
- Personal loan(s)
- Investors
- Legal ramifications?
- Self
- Mortgages
- Bank
- Conventional mortgage
- 203k FHA mortgage
- Investment mortgage (20% down)
- Credit Union
- Conventional mortgage
- 203k FHA mortgage
- Investment mortgage (20% down)
- Portfolio loan
- Other
- Take mortgage on directly from seller
- Bank