Same Old Financing Question, But With A Twist
Hello!
I'm curious about financing for purchasing non-owner occupied properties. I'm looking to leverage myself as much as possibly (aren't we all) by putting down as little as possible, even zero if possible. What helps my cause is that I have property with equity (although I don't want to pull it out if I can avoid it), good credit, good work history, etc.,etc. - even cash in the bank. I know that there are lots of way for me to do deals - I'm just curious if there are people doing zero or low down deals on non-owner occupied properties. Thanks in advance for any insight!
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If you have good credit and income (and sometimes you don't even need to have the income verified) you can get a low to zero down investment property loan. The rate is high... If it is short term, it might make sense to get a 1st mortgage for 80% LTV and then your lines of credit for the other 20%. The other way to do it is subject-to. No points, no credit checks, nothing. I don't know if it gets better than that...
I am scheduled to close tomorrow on 3 duplexs. This will be my first deal.
I am buying with 0 down with 8% on a 30 year fixed rate loan. I am paying 2 points to get this loan.
My only expeses are the closing costs, prepaids, and points.
If the property you have with equity is your home, I can understand why your would be hesitant to pledge it; however what I don;t understand is that unless you are considering failing at this venture, why you would care what property's equity is maxed and what isn;t - if you can leverage the equity in a existing property to obtain a lower rate on a new property - why not????
I can put liens on property if it makes sense to do so - but I prefer not to borrow off of any property. I have attractive loans that I don't want to refinance. I could, of course, pull a 2nd, but if I can put a 100% loan on a property, that would be my first choice, even if it's (slightly) cash flow negative.
One thing that I don't want to do is buy locally. SoCal is extremely expensive, and I'd rather buy in areas that are less expensive (AZ, NV). Even if I did have to come up with a down payment, I'd much rather do $15K than $50K.
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