Pro-Forma-nator Question

Hello,

I was utilizing the pro-forma-nator calculator (NOI vs debt) under the tools section of this website and I have a question, may seem stupid but the answers I get are vastly different.

In the block where it asks for the purchase price I put my # figure. But when your reviewing the summary page that # figure is showing as the amount financed, which is not the case.

What shoud go in the block from the start? Total purchase price or amount financed?

I've purchased a house with all cash at 28% of FMV. I've only had it a couple weeks and have it under contact (with back up offers) but I think it may go sour because of FHA ant-flipping. Also in this area the buyers I'm dealing with are low income/gov't backed mortgages. I've been kicking around the idea of keeping it as a rental vice flipping. Any ideas on how to approach the bank to get a mortgage on this? or should I stick to the original plan of flipping it? I'm not sure on what I'd accomplish by getting a traditional mortgage?
From what I read in here I should get 1% of what I paid which may be tough if I rent it.

After reading all the posts I took the leap and still confident that I have a good deal but I'm new to the game and appreciate any insight.

Thanks in advance[ Edited by captain72 on Date 01/15/2004 ]

Comments(4)

  • Dreamin15th January, 2004

    If you have paid all cash what are you checking out a bank for? Or is that just the cash offer straitgy thing? Not clear on your situation. Does the house have a mortgage?
    I am a bit confused. Maybe I missed something. But I'll drop a couple of things for you.
    If you actually paid cash for the place:
    1. you hold it for a rental you could refi the place and have $$ or hold it for appreciation as you take in the rent to repay yourself.
    2. if you flip it your contract must be assignable so your name will not go on the title but you can walk with your cash at close and let the new buyer deal with whatever financing he needs.
    There are some other options but this seems to be closest to your issue if you are paying cash.
    If your trying to get fiancing and not paying cash and there is no mortgage on the house you should just see your banker or mtg broker with the purchase as an investment property. Don't know your situation is but you just take your # to show that it will work as a good rental and go. At least thats what we do.
    If there is a mortgage you'll have to give more details becuase you have several things you can do depending on why your sellers are selling ect.....
    Hope this helps [ Edited by Dreamin on Date 01/15/2004 ]

  • joel15th January, 2004

    If you paid all cash then the only fields you would have to have filled in are the closing costs, and the expenses.

    Paying all cash for the property though might be a good idea, but the proformanator really looks into purchasing a property with little to no money down.

  • captain7215th January, 2004

    House has no mortgage. I guess what I'm asking is should I get a traditional mortgage to free up my cash if I decide to rent it out or Lease option? Will they make me put 20% down or possible more if I take out traditional mortgage?

    Thanks

  • Dreamin19th January, 2004

    What a lender will ask for you to put down will often depend on the factors of your status. I think if it were me and I was to lease option it out for cash flow, I'd hold it for 6 mths and then pull 75-80% of the equity out of it in cash so I had money to reinvest (depending on my option money and length of terms).
    I wouldn't do traditional mortgage but a cash out equity loan.[ Edited by Dreamin on Date 01/19/2004 ]

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