First Time Deal, Would Like Some Ideas, Thanks
The property is bank owned. Fannie Mae owns it. One problem is they won't show the house unless I'm pre-approved with a 80-95% conventional loan or showing proof of cash money (which I don't have). Talking to a Mortgage broker tomorrow to see what's available there. I've got great credit, but nothing to show for income.....been self employed for most of my life. I tried "No Doc" loan with one lender, they'll aprove me for 140K for properties in good repair, but won't touch this deal because it needs rehab.
one story house 2/1 small 864 sq ft
2 car garage unattached
Comps AMV around 120K
Bank bought it for 100K at auction.
They're asking 65K I know they turned down an offer from a neighbor for 55k.
Probably somewhere in the neighborhood of 20-25K rehab.
Village sewer & water...GOOD!
1.25 acres in an area where land sells for around 50k an acre.
Problem comes with lenders wanting me to live in it. Wouldn't mind it except...
Negative cash flow, investing my reserves in downpayment....not good. Appreciation in that area averages 8-9% per year.
This sounds like a good deal, but I'm just getting into REI and I don't want to tie up my money reserves and I'm leery.
Does anyone have any ideas on how I could finance this without losing my reserves? Thanks
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