I came across a single family house this afternoon that has been in the market close to five months. They just dropped the price by $30K, the new asking price is $450K (NYC pricing) but after repair value the house can be worth $550K. The house needs to be updated, your typical repairs, kitchen, bathrooms, windows, wood panels and few other cosmetics stuff.
The agent mentioned that they need to sell the house ASAP and they might consider a lower price for a quick sale. They might take $400K which I belive it is a good price.
HELP, I’m looking for options to finance this deal. I don’t have that much money to put down at the most $5-8K . I’m looking for an option to help me fund the downpayment and repairs. Is it a good idea to use HML with the little money that I have?
The owners might be interested in creative financing and or holding the mortgage for a limited time. what would be the best way to handle it?
You gotta tell us more info Rich!
How about start’n with credit, employment history, income, and assets.
My personal opinion is that your coming into the deal to high. With repairs, your buying at 80% the value. Investors are finding these details at 40-50% below market. Unless you plan to live in this as an owner occupied property, I’d imagine there are better deals.
Investment, thanks for your response.
My middle score is about 670 last time I checked couple of months ago, been empployed with the same company for nine years and my documented income is about $130K.
In assets I’ve my own house and building a new house as investment which I’m planning to sell once completed. It should be ready for sale in October/November.
After reviewing the numbers, I can say that you are correct. Houses with similar size and options are selling in the $450-$480 price range once renovated. So that means that I need to get the house in the mid $200s so I can have some room to make money.
Based on this information, what options do I have to get deal done?