Just wanted to thank everyone here. I’m not much of a poster but I lurk nearly everyday. I’ve been reading here for 2 years now and have learned so much.
Here are the details of the deal:
3 Unit 1-5br 2-3br
Purchase price: 65,000
Est Rentals: 2100-2400/mo
Utilities(water): 125/mo (all other utilities seperate)
Rehab: 15,000
Realator told me after they accepted my offer they recieved 3 more.
Congratulations on a GREAT DEAL! Those numbers look very good!
Mike
:dance2 CONGRATULATIONS! :dance
Man I can't wait to post my first deal in the upcoming months :crossfingers
Thanks Guys.
Thanks Mike you are one of my favorite posters. I like your straight forward style of explaining things.
I have alot of unknowns, so I plan on posting more in the near future.
First, congratulations.
Sorry about the FHA question. Wrong thread, I had a couple open at the same time.
I do not have to live there. I have my own primary residence that I built myself 8 years ago and am now using the equity to start purchasing rentals.Term is fixed for 30 years, 25% down, 2points, 6.5 interest rate. If I remember their good faith estimate was around $400 month.
Not a FHA loan. Seasoning is 6 months. Which at that point I plan on refinancing to get all of my money back out.(maybe more to help with the next one). I would like to get to the point where I can offer cash for a better deal and than finance them for my money back.
I can get a loan of 70% of FMV after seasoning.I can’t go on FMV when I purchase I can only go on purchase price.
I estimate the value of the property should be at least in the 130-150 range once cleaned up and rented out.
Is there any where you can get a line of credit against equity in a multi family?
I’ve called a few places and they are all telling me not anymore.
Seems like more people are doing FHA loans. Was it a difficult process?
This subject is actively being discussed here: http://www.reiclub.com/forums/index.php/topic,41987.msg198364.html#msg198364
FHA loans are for Owner Occupied purchases. Another member supplied this link:http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551c1HSGH.pdf