Updated almost 6 years ago on . Most recent reply
1st Rental Property
Hello,
I am in the process of placing a bid on a house built in 1949. It has been remodeled but will use inspectors. My issue, house is priced at 99k, been on the market for 386 days, I’m am offering 85k. Bank might not accept the loan because after my 20% down the loan request will be to low. I spoke to my realtor about hard money loan and she says, it’s not a good idea to use hard money loans for rentals. Please help with any suggestions, Thank you.
Most Popular Reply
@Calistro J. Garza Regardless of the loan situation and how you plan to pay for it the fact it's been on market for >1 year is a BIG red flag. I'm guessing it needs work, the layout is bad, or there's structural issues. If you're new to real estate good on you for hiring a licensed inspector. They can really save you from a costly mistake.
That $85K offer could easily turn into a $70-75K offer after the walk through. Investing wisely is all about numbers with zero emotion. What's the exit strategy? What is the goal for the property 2,5,15 years out? Good luck man.