I just bought my personal residence for 95k on Friday. I could put it on the market today for 120k but of course I know that does not mean I’ll get it. I put nothing down and walked away from closing with $1000. My closing assistance and everything totaled at 106k.
I live in New Jersey (southern) and the houses cost way less
where I bought mine as opposed to 50 miles north where I work. My house is near alot of jobs and is not in the ghetto. It is actually a nice area.
I wanted to take a 10k heloc when the value went up enough but that is hoping the market I am in does well.
I plan on living here for about three years but woudl move out if I could find a way to leverage the property to get another one. My goal is to buy multi-family properties
Some facts:
My P&I are $570
my total monthy mortage is $836
It could rent for 1100-1200 through section 8.
What options do I have if any? Can someone give me a lease option scenerio. I just want to form a plan to make a little bit of money off of this house or use it as leverage.
Thanks
well since you have a mortgage, you cannot offer a lease option - that is a contract for sale, which would violate your lenders DOSC.
i’m not sure what you’re goal is - you said you want to live in it, so live in it. what’s all this about section 8 and renting it out?
are you saying you want to rent it out and live somewhere else? where will you live?
that’s awesome that you got it for 95 and current appraisal is 120k, how’d you manage that? or is the 120k appraisal fluff?
i’m curious, how’d you get complete financing with no money out of pocket using conventional loan? or did you not go through conventional lender? seller financed?
I would not rent or lease-option (rent) your personal residence. Even under the best of conditions, renters are VERY hard on a house. Why tear up a nice house by putting a renter in there? Moreover, this house will not make a good rental because it is not cash flow positive.
I don’t understand why you need to sell or get money out of your personal residence to buy a rental. If you want a rental, buy one. You don’t need money to buy rentals any more than you needed money to buy your home. There are a LOT of disgruntled landlords out there and many of them will do ANYTHING to get rid of their problems. However, you really need to have some money in reserve with rentals and you really need to understand the costs associated with rentals - otherwise you’re doomed to fail.
I am not renting it any time soon. I just want to know how I can make money off of this house later. I don’t plan on living here for more than a few years and want to know if I have any other options besides selling. Like you said, it is not a cash flowing property so…
I am at exit 4 and you are at exit 34 which makes us 30 miles apart. Cherry Hill is expensive. I wish my area would go up to the Cherry Hill price range.
If the mortgage is $875 and he could rent it for 1100-1200 and the extra $325 a month is not cash flow WHAT IS IT? Have you ever thought that not all of us are able to buy 15-30k houses? Some of us live on a little planet I call EARTH!! Where 200-300 positive cash flow is good. Think about it at $300 per month it might break even if you are doing repairs all the time. On the other hand appreciation is the key. I know that parts of NJ are going through the roof. Lets say the house is going up by 5% a year even that is $50k in ten years times 10 houses or so.. Your right who could use a half a million thats just chump change. LOL
Then again I could tell you I could buy a house today for 925k and sell it tomorrow for $1,800,000.00 and you would find something wrong with the deal.
People can’t tell in an e-mail that you’re messing with them. You’ve had rental properties and I know for a fact that you don’t believe for a moment that the mortgage payment is the only expense for rentals. Good try, but I’m not biting on this one!!!