Buying an interim property before the home I want to move to
Hello BP,
I am trying to work out two deals at once and need your advice.
I have a home that I bought for 207k and am selling for 245k in a hot market. I have been preapproved for a new mortgage at 230k with 5% down WITHOUT having sold my home, but I have about 20% I could put down but don't want to.
So here was my original plan:
1) List home. I really want to get the investment cogs moving.
2) Find a house we can buy and fix up to make rent ready so once we sell our HOT market house, we arent homeless and instead prepping for investments. (keep it under 150k)
3) Get under contract at a house (at around 187k) in a market that's getting hot but is still under construction until Nov/Dec/Jan. We can give the EMD, no worries.
4) Once our house is under contract, move our things to storage
5) Once the new house is complete is complete, move there
6) Since combined it would be around 337k loaned out in lieu of the 437 I have been approved for, use the remaining 100k to find another investment property to purchase.
Is this a problem? Is this a good idea? We realize we might have to do a HML or Investment loan for the Fixer-Upper so we can get a Primary residence loan rate for the NE-Raleigh house. We just want to make sure we're at least semi-intelligent in this process.
Is there any other approach you would take? Are there any lenders that could give me information? Is there any other concern other the risk of losing the EMD?