I found a deal today where the seller is selling 3 single family homes for $70,000. I am willing to pay $60,000 for them. All 3 homes are currently rented, and tennants have been there for 3-5 years and there is no current leases. My question is how do i get financed for somthing like this? can I do all of them into 1 loan, or do i have to do individual loans? But if it helps here is the breakdown.
Income in : $1150 per month
Taxes $165 per month
Insurance: $100 per month
10% Vacancy: $115 per month
10% Management: $115 per month (I do the management myself)
P&I for $60,000 @ 8.5% = $465 per month
Total In: $1150
Total Out: $960
Profit: $190 per month
You will have a hard time finding financing to group the homes together. I can personally work with loans to $20k up to 90% ltv. Like christopher said you will be hard pressed to find anyone to go that low. If you’re interested I will be happy to answer any questions you have.
You can do it as an LLC, actually sign agreements for 70k, and get 10k assist. Commerically assists are not regulated. If you put 20% down off of the 70K price, meaning 56k financed then you can do your deal commerically on residentail homes. The norm is 2 points, rate of 7.75% on 5 yr arm, no-prepay, and 25 yr am with a 10 yr term.
This way you get property recorded at 70k and get 10k in free equity. no seasoning required…
If you have enough equity in one of them then just get the mortgage on one and have him sign over a deed on the other two and have them free and clear. You can always do a loan later on the ones free and clear to pull cash out.