First Investment Purchase - NEED HELP!!!
Ok, here goes - I'm ready to jump in with both feet and have found a property (4 units) that I would like to own. The seller is not very flexible at this point, however there is a positive cash flow of about $400 per month- and I've determined I can borrow 80% from my mortgage lender. Problem is - I need to come up with about 10K to make it happen and I just don't have it. Could someone give me some guideance and possible advice on how to find a partner/lender etc.... for 100% financing? My credit score is ok but not great - not due to late payments but to recently adding a lot of debt. Any advice??? 
Where is the rest of your debt coming from? One thing you might want to think about is having the owner carry the rest of the cost. He or she might prefer carrying the note and having recurring payments coming in like they are use to.
The debt isn't anything unusual - refinanced my primary residence and purchased a vacation home at the shore, all within 90 days of each other. (Plus took out a hoime equity loan to buy the shore house)
The Seller wants to walk away with at least 20K in his pocket, at least this is what the realtor tells me. He's not particulatly anxious to sell but is motivated. I have not had the chance to talk with the seller directly to present an offer because I can't work out the cash yet. If the numbers work,. should I offer more than I was prepared to and get the difference back as a credit?
Thanks for your reply!
How much is the sell price?
Sound like my first (and only) deal. I got the owner to carry a 10% mortgage, the bank an 85% mortgage. The remaining 5%....Some from my pocket, most from a couple of credit cards (max interest charge 7.9%, with no fees). A year has passed and I have paid off about half of the credit cards (still less than 8% interest). When the cards are payed off (soon?, this spring?) I will go on to my next deal. Not the best way to do it, but I have a duplex with a positive cash flow of about $300 a month after all expenses.
Positive cash flow of 300 total? Or per apartment?
The Sales price is $329,900 and there is positive cash flowfor a total of about $500 (4 units included)
This sounds like a good opportunity, great schools, nice neighborhood, fully rented, maintenance-free building (according to my husband who's in construction)..... but as I'm sure you all cal remember - I'm NERVOUS!!!!! I could borrow the 10K from a credit card of HELOC on my vacation home, but can anyone think of another method?
My duplex sold for 97K and I have a net of $300 (total rent is $1000) a month after mortgages, credit card payment, and water bill. $500 positive cash flow for a 300k plus 4plex sounds a bit lean. Can you give some more info...what are rents and expenses. How did you figure out the positive cash flow. Are you already taking out reserves for repairs, marketing etc.
Is the 400-500 positive cash flow what the seller is currently making or is that what you have projected based on selling price? Also, when you say the seller wants to walk away with 20k, is that how much he wants after paying off his mortgage? Because from looking over your numbers, it appears you have about 55k to put in of your own cash. If so I would approach the seller to take back a second for the 10k or check into getting a 90% mortgage. But again, how does the monthly income project with all the new financing.
Unfirtunately most of my detail is at the office and I'm home today - but in a nutshell I will gross $2700/mo in rents and I am expecting to offer a second to the seller at 8% to make it inviting for him. Total mortgage payments (PITI) would be about $1950/mo plus a 5% vacancy plus marketing/supplies/maint I estimate to be about $2250 total expenses.
Hi tmpringle31,
Just to let you know. There is a bank I know of that will allow 100% financing for investment properties. But, it has to be full documentation and , obviously, the numbers have to work. I don't know if I can state the name of the bank so I won't here. Let me know how I can get it to you.