Investor · Windsor, CT · Member since 2016 · 24 posts · 11 votes
It always happens that the perfect deal just pops up when the finances are not there.
180k for two family house. Estate sale
I own my primary residence with my father as cosigner. From this house I Took 50k HELOC to buy my first 2 family investment house at 235k.
The rent from this property pays the mortgage, taxes and insurance at 1640. Plus 380 for the heloc payment. I pay water usually around 80. Then I maintain the landscaping since I only have one rental. Both units are rented out at a total of $2700. $600 left to play with. I had put down 25%. This deal happened this past December.
The new property is @180k. What are my options to come up with funds? Can I buy as owner occupied and move out my current residence and live there for a year? This property needs about 25k of rehab. But the location is very great. It would easily appraise at north of $260k after the work done. Any insight is appreciated on what my options can be. The sellers have out it at a price that it will be gone immediately.
@Sandeep Singh how long have you been in your primary? I know a lot of times there is a clause in an OO loan that stipulates you stay there at least one year. If you are free to move, what about a House Hack where you occupy one of the units of the 2 family house. This would only require 5% down on a conventional loan as an OO. The problem is what about your primary that your dad co-signed on and you have a Heloc as a 2nd lien. You wouldn't want to increase dads risk, that's for sure. Can you get a private loan or Heloc on the 2 family investment house you already own? Or perhaps you can bring another investor in on the new deal? 50% of something is better than 100% of nothing.
thanks Brian. In the primary I have been living here for 5 years. I won't be able to take another heloc because I just took one. I was thinking about the house hack and doing 5% being owner occupied in 1 unit. Is there a way I can do that? Since I already have a primary?
@Sandeep Singh realistically it sounds like you aren’t financially ready to buy this. I would figure out how to get your father off your primary as a co-signer first
One thing to think about is the terms of your HELOC. I took one out on my primary residence, and one of the stipulations was that I had to remain living in the property the line of credit is secured against. I'm not sure if all HELOC's are the same, but I would check the rules and terms of your's.
@caleb he is only the cosigner at the time I had started a new place of work and they needed the cosigner. The reason he hasn't come off yet is because I don't want to pay for another closing cost to refinance without his name yet.
@justin would the HML be for the whole loan or just the down payment? I haven't read much about HML