My sister-in-law is selling her house in a great rental neighborhood. We know the house and all the rehab that’s been done. It’s a 3/2 with a bonus room at a good price. I’ve run the numbers, and it will cash flow($308, 13.97 cash on cash). It would be a great first rental for our portfolio, but we can’t get the financing. Is anyone interested in helping us?
@Richard Hipp Have you thought about asking your sister if she will finance or if she wants to be partners on the rental...either indefinitely or until you can get financing.
@Theresa Harris , she needs the equity she has in it to buy the house she’s having built.
@Theresa Harris we are looking for a partner to bring the down payment.
@Richard Hipp not sure what the numbers or details are but my first instinct would be that because you are working with a family member perhaps the sale price is flexible. And again not knowing the numbers, but if the house is actually worth or would appraise for X, then if you can "get the house" for 80%of X, and then perhaps a local bank would finance that deal for you as a "zero down deal" as the LTV is still only 80%. At that point there would be an opportunity to make your sister a partner and give her equity in the deal.
Alternatively is there a possibility of your sister simply keeping the house, using a HELOC to get her equity for her next place? Then at that point you would be the "manager" of the rental and would get a percentage of the deal.
Just throwing some ideas out there! Hope you find an amazing solution.