Financing For Properties With Price
Does anyone know how to finance non-owner occupied residential properties that are <50k in value? Every lending institution I contact will not finance properties whose value is less than $50,000. Does anyone have any suggestions? :-?
Is this a flip property? if so go to a hard money lender.
do you have equity in your own home that you can borrow for now... then after you have the property for 6 months to a year you can get an equity loan on the new property and pay off your own home equity loan.....
or if it's a good enough deal find a senior citizen who just had to take their retirement plan money and guarantee them 8% on their money! Put an ad in the paper... do it with a 2 or 3 year baloon ... at that point you will be able to get an equity loan on it...
not a flip property. Great cashflow though.
interesting question.
How many of these can you find?-- you may be able to find a a local bank that will package them as a group to get over the small loan size. You may find a local credit union that won't object to the small loan size.
Do they really cash flow?
You may be able to finance something else and use the money to get into these deals.
Where are you at?
mark
I can find a bunch of them.
Here are some numbers, you tell me if they are good.
Duplex 23K,
gross rents=7200
vacancy=360
Effective Gross Income=6840
taxes=500/yr
insurance 360
maint=600
management=720
Total expenses=2180
NOI=4660
Debt service=pi @ 8%=169/mo or 2028
DSCR=2.3
Or in other words, a monthly cash flow of 220/month for 23k.
I am in Rexburg, ID.