There is an investment property in Ohio very close to me that is for sale for $15,000. I have a few thousand but not the entire $15,000. I know I could easily fix this up for $3000 and start renting it out for $700 at least a month.
How can I get financing for $13-15k to purchase this house. Are there specific loans I can only get to purchase an investment property? Thanks everyone!!
@Derrick Wortman You could always try a personal loan.
@Derrick Wortman you could see if a hard money lender would be able to help you out
@Melba Chambers am I able to use a personal loan to buy a house? Thanks for the comment!
@Remington Lyman do you suggest any places specifically? Thank you!
@Derrick Wortman you’re best bet is either hard money or personal loan (loan from someone you know). Most lenders have 50-75k lower limits.
@Derrick Wortman Yes as long as you aren't trying to finance any part of it.
@Jonathan Taylor thank you
@Melba Chambers thank you very much!
I’m a big fan of getting a heloc on your existing home if you have one. Mine allows me to access up to 90% of my home value.
Also, if you have equity in your vehicle, I’ve gotten low interest loans on mine before.
I also have a personal line of credit from a big bank but the rate isn’t much to write home about...
Best of luck,
I'm curious to see how this plays out. Please keep us posted!
I'd go for a personal loan. I get mailers from So-Fi and BestEgg. One can loan up to $100k; the other one up to $50k. My credit union only loans up to $25k so they aren't as appealing. HELOC on your primary residence could be a good option too.
@Derrick Wortman a 15k house isn't one you get a mortgage on. What are you doing to make money right now? If you have decent income you could get an unsecured personal loan but I wouldn't recommend it for someone who has never done this and isn't experienced with DIY rehab projects and handy.
@Derrick Wortman I’m super new so idk if this is the best idea, but personal line of credits at a credit union is a possibility. Or just a personal loan
What's your goal with this property, is this a rental or flip?
@Derrick Wortman for me personally I wouldn’t want debt service on a $15,000 property. Properties in this price range will typically have higher expenses. After all expenses it would only cashflow a few hundred a month if it was free and clear. Personal loans have high interest rates, and the payment would probably be too high to cashflow.
@Derrick Wortman put it on a credit card with 0% interest for 12 months
@Derrick Wortman I’ve heard of some ppl using credit cards with 0% interest. Fix it up and refinance through bank to pay off card.
Or, you can s is if you can get owner financing. Give the owner your down payment and work our terms. If you negotiate right, you might be able to do it interest free!
@Derrick Do you or a family member have a whole life insurance policy? The interest is cheaper than both a credit card and a personal loan. The repayment terms varies. For ex, You can use the cash value in the policy, pay yourself back w/ the rental income, lump sum when you sell, surrender the policy. Way too many fine details.. Talk to a license Insurance person. If you're a Veteran, be pretty hard to beat Navy Mutal... I'm dumping my extra cash in such a policy for that next market crash and earning 5.25%... cheers
Use a credit card or personal loan. How will you pay to fix it up? Are you sure their isn't liens on the home? Regardless of the sale price you need reserve money at all times. Homes at that price range become maintenance expensive. If you don't have adequate reserves you will always be behind.
IMO, you need to save more money. If you found this deal you'll find another deal like this or better when the fall/winter season arrives. Set a savings goal and use cash for this type of price.
whats the scope of work that this house needs? Usually buildings at that price range need alot more work than 3,000. Is the building a board up? I'd imagine it's very outdated. Probably has no appliances which could burn most of your rehab budget. Is there back taxes? If it truly only needs 3k of work that's the deal of a lifetime. Realistically if the place needs a roof and some plumbing electric repairs that could very easily cost you way more than 3k just in materials.
@Derrick Wortman I would partner with you 50/50 if that works for you.