Good Deal?Great Deal?
I need help with this scenario? Found 3 family in good shape all major repairs complete. Need inside cosmetic work. Seller is older guy looking to sell. Has been on the market 1.5 years. Started off at 160,000 now at 85,000.Appraised at about 135,000. Nice small town near large suburban city. Rent would be about $800 a month(total) on the low side if I wanted to instantly rent it. Normal rent would be around$1250. I have about 50,000 in a HELOC from my house available and also have 30,000 in debt from building a livestock barn. Good credit, no other debt besides my mortgage. Is there a way to get a motgage on this property and include my debt? The seller seems to be willing to be a little creative. Can anyone help out there? :-D
why the big gap between appraised and asking price? Have you seen the appraisal? when was it done and why?
Are any of the units rented? How much to put it in shape for the $1250 rent? What are the operating expenses?
You could write a contract with the seller to buy for $135,000 showing a mortgage contingency for $108,000 (80% ltv) write a side agreement with the seller that says that if you actually close by ___ date he will refund the $50,000 above the asking price of $85,000. Have the title co. prepare two checks to him (they'll ask why, because he wants it that way) one for $50,000 the other for his balance. He signs the $50,000 check over to you.
Use your Heloc to make the downpayment. Get the refund the next day. You've financed for $23,000 more than your purchase. It didn't wipe out your barn debt but it got close.
your payment on the $108,000 will be about $670 per month. Don't go into default, you've committed bank fraud.
I really don't want to commit bank fraud do to have three kids, so are there any legal ways to do this. Can one get a HELOC from the rental house quickly, or does it have to be owned for a year. Can I have him refinance it somehow? It would take @12-15,000 tops to make it tip top shape. It is not currently rented. Seller's not even tried to locate tenants, just sitting on it. The appraisel was done when he first listed the house and his realtor told him his asking price was too high. He dropped it down to 150,000 then on down to 85,000. He was planning on retiring to FL. Part of the reason he was asking high is because he was renting it for 1800 a month using Section 8 vouchers( way to high for the area, but the housing auhtority didn't bother to check much). Thanks for your input.
Ask the owner to finance the property. Borrow $35,000.00 from your HELOC for the down payment and ask the owner to hold a 1st mortgage @ 6% for 5-10 years. I would put the 3-
plex back into the section 8 program,you will get a higher rent.