Hello everyone! David Here. After becoming disabled, investing is about all I can do these days. And I can't do that well. LOL But we have invested in a few properties in the Ft Lauderdale, FL area and in my old home town of Winter Haven, FL. We closed on a 1894 sq ft, 3 bedroom, two bath lake front home with dock, boathouse and lift located on Lake Howard in WH. (Closed 4/24, rented out at $1500 a month on 5/5) Then snagged a 1344 sq ft. two story. 3 bedroom, 2 and a half bath, 2 car garage town house on Lake Hartridge in WH. We closed on it 5/15/15 and have 3 people wanting it. Carpet went in today. $1050.00 a month was the last price I heard on it. It might bring in $1100 which would shock me. Then just today, an offer was accepted on a 1148 sq ft 2 bedroom 2 bath condo on Lake Buckeye in WH. We close on 6/1 if everything is ready. It has all kinds of new stuff in it and only needs some paint on the inside and then it is ready to go. A family illness forced the sale. It should rent for $850 to $900 and go pretty fast. All 5 of them paid off with no mortgages. Sounds pretty good right?
Well, it does until you run into your dream home! I was born in Winter Haven, FL and I have always had my eye on a few older homes I would love to live in. OK, historic homes. Lake Howard in Winter Haven, FL, is where some of the first homes of the city were built on a lake. The city incorporated in 1911 with about 440 citizens living there. Well my dream home was built in 1920, and in my opinion, is a grand old home. I want it bad. But, we just bought 3 properties cash to put the cash to work. Enough to buy my dream home outright. LOL We have a home in Pompano Beach, FL that would sell for about $160k. I got a cousin looking for a place to live for him and his two sons. They don't stay with him all the time. They would in this home. LOL. He pays $1000 a month right now and has for 6 years or so. He thought he was buying a house but he did not have it locked in like he thought. So he has been paying rent for all these years.
I would like to put a deal together for about $200k to $250k. The house will appraise for well over $300k. I think more like $400k. I have not bought anything on credit in forever and it has hurt my credit score a bit. Bad enough I don't have a FICO score right now. LOL I opened a credit card to help get one. Cash is king but it don't help the credit. I had a 740 earlier this month but this new credit card dropped it 66 points. That really bummed me out. But it is climbing back up. I am trying to figure out which way to go if I really want this home? Which way do I go for? Do I sell a few investment properties and buy it outright? I like the properties we have. Sell one and put a mortgage on the rest of it? Or just put 20% down and let my cousin make most the payment and I kick in the rest? This way I can keep the Pompano Beach house which will go up in value. I kind of need to stick around the Ft Lauderdale area a while longer. But I hate to lose my dream house in Winter Haven, FL.
Is there a lender or investor that would be willing to take a chance when I don't have a FICO score and the other credit scores close to 700? It will be back over 700 before too long. My cousin owns a aquatic weed control business with a business partner. But he went through a divorce about 7 years ago or so and we know how that usually goes. It was not pretty. LOL I want to help him build his credit back up as well. Any suggestions on helping me or us get a loan for my dream home and helping my cousin rebuild his credit? OH, I don't owe any other bills. Well a cell phone bill and a utility bill. I think I got a decent income coming in. LOL I have a little SSDI coming in as well. Tell me what you think or what you would do?
Thank you for your time and help!
With all these properties paid off, perhaps you could get a local bank to give you a portfolio loan to make the purchase of this house? A portfolio loan is one that is kept in-house rather than sold, so they can make their own rules. Having a high net worth but no actual income hurts your ability to get a traditional mortgage.
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