All Forum Posts by: Matt Z.

Thanks all. Seller financing is not an option for this owner. 

I currently have a private equity investor in place for the down payment, and the bank loan was approved with that. (Proof of down payment/funds was already sent to bank and approved). There is a chance the investor may back out however, if so, I wanted to plan a back up. 

I have not used a HML before, so this is great insight, and much appreciated.

I do have 20k in savings I could use if needed + 7k reserves I set aside, however the original plan was to use a bank loan + equity investor. 

The renters pay all utilities, and current owner pays for septic clean up each year. 

Hi all, 

I recently found a multi-unit (duplex) property I am interested in the Bucks County, PA area. The property is a duplex with 2br/1 bath each unit, with monthly cash flow of $2500 month when both units are rented. Both units are currently rented and tenants have 7 months left on their lease. I recently was pre-approved for a loan up to $200k, at 4.75%, 30 year fixed. With the current taxes, the loan estimate for the bank would be roughly $1000 a month with 25% down. The property costs $255k, so with 25% down, I would need $63,750 for down payment. I was planning on using a private investor but that may fall through. I was now looking into a hard money lender to use only for the down payment. Has anyone used this strategy for a down payment before? Essentially I would have a mortgage with the bank for the loan of the house, and a monthly payment for the hard money lender lending the down payment money. With the current cash flow and mortgage around $1000, if the hard money loan was under $1000, it would still bring in a good amount of cash flow. I would prefer much lower, but not sure the max you can stretch a loan like that. I only have had experiencing with conventional loans when purchasing the home I live in. This property would be 100% investment/rental income buy and hold. 

Any recommendations would be very helpful. 

Understood. Thanks for clarifying.

 Thanks Joe. So even if my financier was a limited partner in the deal (their name being on the deed), it would be considered a gift in the banks eyes? Furthermore, what do you mean by season the money 2+ months?

My wife and I have been searching for a duplex within the surrounding Philadelphia suburb area. We have our eye on a few with our realtor; however before we move forward, we are trying to nail down a solid game plan for financing. We have already been pre-approved for the loan amount desired, and are attempting to seek OPM. We do have a soft deal in place with a family member, where they would give us a loan for the down payment in exchange for an equity ownership percentage of the house. The second option would be to take the loan for the down payment from that family member and pay them back monthly with interest. Either way, it would be a loan for the down payment, and we would have a mortgage in our name. I just wanted to confirm if there were “gift” rules or any agreements that had to be documented for something like this to take place. Is this a common practice?

Hello all, my name is Matt and I am new to this site. I live in the surrounding Philadelphia suburbs. I currently work as a project supervisor for a technology company with hopes of leveling out my assets column with my first property very soon. This site seems like a great place for knowledge and tips from some seasoned real estate vets. Hope to learn a lot here.