I was looking at a property that is being sold as 3 homes on 1 lot... 3 SFR on 1 lot as a multi family... any pros or cons of looking at this?
Second question it says existing loan assumable... what does that mean and is it a good or bad thing?
I would want to buy this property & then rent out the units for cash flow.
If the loan is assumable, that means the mortgage can be transferred to the new owner (at a cost of course). I suspect it is an older mortgage so the loan to value is probably quite low. The interest rate is probably not that attractive either. Most newer mortgages have a “due on sale” clause which requires the mortgage be paid off when the underlying property is sold. Get the specifics of the loan, and if you can, get a copy of the loan agreement.
Thanks for your help.
I will ask for those and see how they look.
If it’s truly assumable, it’s either an fha or a va loan. In any case, you have to qualify for the loan assumption just like for a new loan.