Financing Question
I am a newer investor, with just one property bought, fixed up, rented for 2 years and sold with a decease profit.
I am looking at my 2nd property and trying to figure out the best way to work out the financing. I got a call about a 2 unit, in my town (were prices are quickly increasing) for $55k. Its a forclosure and the 1 remaining tenant will be evicted on 8/7. The realtor called me today, and hasn't adverted the property as of yet...but the bank wants $55k. I think it needs less than $10k in repairs. And I can rent each unit for at least $500. Taxes will be about $175 per mth.
Since I have GREAT credit and also a great debit to income ratio, I'm thinking that I should try to get as much as possible out of the mortgage with very little down payment and some repair money. I think after a clean up the house will appraise for at least $80k to $100.
I talked to a mortgage broker that I know and they told me that there are programs out there like this...but that I should go to a bank, since my credit and ratio are so good, because they will give me the best terms and least fees.
My bank that I have used up to this point are a little old fashion and haven't offered me the terms that I want...but I'm thinking that if I TOLD them the terms I want they just might give it to me.
So the question is...what are the best terms for this particular situation?
Any help is appreciated.
Aki
I commend your mortgage broker on passing you if they do not know how REI works, but small banks are very conservative. If you have GREAT Credit a loan officer or a mortgage banker can get a investment loan for you with very little down. What type of terms are you wanting?