My Dad lives in NE St petersburg, Fl. He and his wife have a mortgage on their house. They have decent credit to good credit. His wife and her brother own a condo 2/2 in a 5 unit building. There is another unit for sale 2/2 they want 99k for it. Neither units are updated. I am thinking updated these units would be worth 200k. My Father is not employed currently. His wife is HR manager of Funeral Company. How can he purchase the 2nd condo unit w/o using any of his own money and not have a payment. My idea…
Keep the ltv at 65% include interest and all fees rehab the unit while rehabbing either find a buyer or renter if renter refinance unit when rehab is complete and rent to renter above monthly mtg. Please feed back… he dosen’t think he can do this we need to educate him… this has been his lifes dream to own multiple properties… Thanks everyone and if you can do this for him let me know so I can hook you both up… Val
youmean to tell me there are no experts to help me? At least tell me if I am on track for my advice!!!
You need to firm-up your numbers to know if this is a good idea. You say the condo is worth $200k after rehab, how accurate is this? What have other units in the building or similar nearby units sold for recently? What are the true costs of rehabbing the property and does your father have this money or will he have to borrow it? Have you considered other costs; closing, carry, property expenses etc.? What are market rents for these units, are they sufficient to cover debt service and expenses? As for no money down, is seller financing an option or is the existing debt on the unit assumable?
shinauldc,
Please do not farm business in the Discussion Forums and do not put your contact information in the body of your messages.
Keith