Buying A Rental & A Fixer-upper To Retain...
Hello,
My significant other has one single family rental, that he has rental receipt income from. This is the only property in his name. This property was purchased a few years back, and has had steady rental income history.
He now wants to purchase 2 homes. One is $25,000, and has current good rental history, with current tennants, who pay $600 mo., and their utilities. The second property is a fixer upper, which he would like to buy as primary residence, and is around $36,000. The primary residence property he would like to purchase would be kept until rehabbed, and then either retain as a residence, rent out or sell. (We're not sure where we'll go with this one yet...) The way I figured it, if he bought the 2 properties, he would only have to pay an additional $80 or so per month to cover the difference in rental income on the one, and his total mortgage/insurance/taxes for both properties, plus utilities on the residence property. In other words, the rental income from the one property covers all but $80 and utilities on his primary residence property. Does this sound like a viable way to invest?
He has somewhere between a 720-760 FICO score, and is looking for a no doc loan. There will be no or minimal down payment. 100% financing. He would be interested in possibly going with a 15 year on them.
I have recently seen something about a "no income" stated loan. Can someone explain to me what this is? He currently has no stated income except for the current rent receipts on his currently owned rental property.
I would like to know if anyone has any suggestions, creative or otherwise, on how he should handle the financing end of this situation.
Your thoughts & input are greatly appreciated!
:-? :-?
"no income" stated loan means the bank won't verify your income when doing the loan. They will simply ask you if you have income of ____ needed to get the loan. We haven't done a stated loan yet but we are headed in that direction shortly. It's not a bad thing just reality. In our case we have too many loans so conventional banks won't touch us. You can expect to pay higher points and interest rate with those loans. Your number ssound good so the additional money every month shouldn't matter.
Sounds like your making a smart choice in buy the two places. Good Luck.
[addsig]
It all sounds good to me!
Good luck - looks like you are headed in the right direction.