“PERKINS Village, Lg. 3BR Rent House. 13743 Dumaine. Good tenant rent. $110,000.”
This is an ad from my local newspaper that I came across.
With my fico (558) I was offered 60% ltv on a rental property.
I called about the house… they told me that the rent is $900/month and that it should appraise from about 120k. Assuming that’s correct then I could get a loan for around 70k? The seller told me that getting owner financing for the rest is out of the question. Anybody see anything I can do here?
EDIT: Tell me if you could do this (not w/ this house b/c they said owner financing is out of the question…but with another). Borrow the 60% to give to the seller. They carry the rest of the balance while I pay interest only w/ a balloon after 2 years. When it’s time to pay I get a home equity loan to pay them off?
At a 60% L.T.V. loan on 120,000.00 you would need $48,000.00 How many open trade lines do you have on your credit right now?
Do you currently own a house?
Now if you could get the appraised value to 150-160,000.00 you could work this deal. And show the owner holding a 40% note.
The value here is a little to thin to really work with. Everyone here will tell you this deal is not worth doing and they are pretty much correct. On the other hand if the home is in need of some major repairs this might be an awesome deal.
Does the house need work? If so what could you sell it for after the repairs are completed?
Here is the other part to this. Why would you really want to. If you were to find some short sales in your area why not work them and get a house just like that for 60-75k and have at least 50k in equity right away. if this area is going up huge like Vegas 2 years ago or Gulf Shores Alabama has been for the past 6 years YEAH by all means buy it and do the 2 year balloon if you are only seeing 4-6% inflation there is no need in buying at this price. Have you ever read anything on short sales?