Ready To Buy Our Next Rental But...
Does anyone have any advice on how to purchase or how long we should wait to purchase another property. My husband and I currently rent out a duplex and live in our own single family home. My question is how do we go about purchasing that next rental if neither property has a lot of equity built up. I hear of people buying multiple properties in a year but how do they without equity. Thanks for any and all advice. :-D
If you don't have the funds you can always request a 2nd mortgage from the seller. Example: Property cost is 100K. You borrow 80K from the bank and request 20K, to avoid mortgage insurance premiums, from the seller.
As always make sure the deal works for you. Some banks may or may not allow this but it is worth a shot.
A fellow in PA did exactly what I have described above.
Good Look
P.S. I am new to this too. I have my first property under contract.
If you're wanting to purchase another duplex you should be able to obtain 100% financing with decent credit (above 720). My broker has this deal at 7.5% and no PMI or points. Amazing deal. I haven't used it because I haven't found anything that will cashflow at 100% financing.
Can you PM me the name of the broker? I could use someone like that.
Quote:
On 2004-10-27 12:22, edcanfield wrote:
If you're wanting to purchase another duplex you should be able to obtain 100% financing with decent credit (above 720). My broker has this deal at 7.5% and no PMI or points. Amazing deal. I haven't used it because I haven't found anything that will cashflow at 100% financing.
We definitely want to buy another duplex or double as they are called here in New Orleans. The only problem is our score is only 660. Do you think we would be stuck looking for a hard money lender? We actually bought our single family in July with 100% financing at 6.75% that seemed to be the best deal for us.
I will look into requesting a 2nd form the seller as suggested by PlasticMan I am open to any ideas that help us move along faster. After reading Carleton Sheets we are eager to by more multi-family units with as little out of pocket as possible.
P.S Good luck on your first contract
[ Edited by la2lawoman on Date 10/29/2004 ]
Yes, all of these ideas are terrific but with a 660 credit score there are several lenders that will do 90% -100% on investment units. If you are still concerned with your score I would reccomend paying off some of your consumer debt which in many cases will increase the score a few points.
A good mortgage broker worth his salt should have no problem in assisting you in closing on another double right now! go for it.
dl will
" Short Sale Master"