All Forum Posts by: Steve Sapowsky

Thank you Bill Gulley The two houses are on separate lots and will both need septics. I plan on building my forever home, or at least foreseeable future home on the back acreage. So by the time we get done with septics and the 40,000 sq ft minimum building lot there won't be much room to subdivide any more and I don't really want to over develop this land. Also there is not enough frontage to build any more homes on the land after we build the third house out back.

Eleena de Lisser good point. I will not be living in one side

Will a bank lend to someone with low credit for a duplex that cash flows? I can come up with the 20% down but that means not paying down my debt and therefore continuing to have credit in the low 600s. Any creative suggestions welcome.

I really can't refinance because technically I don't own it yet.

Scott Hollister I will only be able to do so much out of pocket then I will need to get a loan to complete the renovations.

Scott Hollister my parents offered to help me secure the property because they have a line of credit. The seller was motivated and wanted to move quickly and I don't think I would have been able to meet his needs with conventional financing. So really my parents only interest in this property is to help me. Their loan company wouldn't allow me on the mortgage but I still have to pay it because it's really my deal and not my parents. They are two separate addresses that are adjacent. They are in fact long-term buy and hold investment for us. After repairs and figuring for expenses we should be right around the 1% rule which is pretty standard for my area. Plus the plot of land is located between plots of land on either side owned by my family. I doubt that adds value but it is a victory for our family in terms of owning continuous acreage.

Scott Hollister thanks for the input. The houses need work and sit on 6 acres. I think it will appraise higher than what their note is for. I am currently doing work on them out of pocket. I am also paying the mortgage. We are working on one right now to rent it out in the spring. The other we will fix up and move in for a couple years while we build our home. Then this one will become a rental too.

Can a seller hold 20% of the mortgage as the down payment if the property is not paid off? Could I offer the seller $40k higher than asking price and have that profit go into the deal as the down payment? Keep in mind the sellers are my parents and they are very open to helping me in any way they can. I really want to avoid PMI. Any other suggestions would be awesome. Thank you!

Ya I would say reia. Call up some realtors in the area. Try searching Facebook too.

Try to get in with an investor/property manager. There are a few out here where I am from and I know they are always looking for good help.