Real Estate Investor · Menomonee Falls, WI · Member since 2015 · 1 post · 0 votes
I would like to purchase a foreclosed duplex which is "home path" and reside in one, and rent the other unit. How can I get funding for this deal? I have been self employed and don't prove the income necessary for a bank to loan me the money. I have a good credit score, and I will have about 15% down payment by May/June when I profit from my 1st and 2nd flips at closing. Hypothetically, I wouldn't need to make a payment monthly as my tenants would be renting for the cost of insurances taxes and hopefully the full mortgage payment. It is in a hot area and will be easy to rent! (I think- I've never actually owned a rental before) I've also never purchased real estate personally, but have for my LLC. Are there currently any first time homebuyer advantages? Or should I find private money?
I need to move quickly as I'm afraid I'll miss out on the deal if I wait too long. It'll be at half of its assessed value soon and doesn't need any work to make it rentable, but will need some repairs in the not too distant future.
How can I make this deal happen? I'd be grateful for any feedback!
Lender · Newport Beach, CA · Member since 2013 · 264 posts · 97 votes
11y
There are different options available to you. There's even a homepath mortgage that allows you to put less money down if it's your primary. If you've been self employed for the last two years and the income shows up as capital gains, that's still doable. You need to have your tax returns analysed by a competent broker or banker to see what income can be used even when it's not regular wages or sales.
As soon as you get out of the homepath, FHA, conventional options, the portfolio options kick in. However, you'll have to put much more that 15% down. Usually 20-30% depending on the deal.