Hi everybody,
I have been searching for an investment property for a while now and I have finally found one. After studying the market in a certain area this one property seems to be a good one. I was able to nogotiate the price down from 329k to 265k. I spoke to some agent is that town and they told me the fair market value is around 340k. I am thinking of renting the property.
My biggest problem:
My credit is not good.
Its been hard to get a mortgage. (should I tell the mortgagee I am buying the propery for investment?)
I dont have too much money.
Who is a good non conforming lender?
You have a bigger problem then not having any credit or cash, the subject properties numbers do not pencil out, 265k single famliy home to rent out? the rent you get from this property will not cover the mortgage, unless you can find a renter that is willing to pay 2K per month. A normal renter would not go for this but… you could lease option it out to a tenant-buyer, that would be your best bet. Unless I am wrong and it is a multi-family, but even a duplex you would have a hard time getting the mortgage covered, unless you can come up with a large downpayment. You could look to bring in a partner that has crdit and cash that will allow to do the work, and split the profits.
visionary,
Let us not forget about the variance in what Fair Market Value is from state to state. Here in Texas where a nice 3/2 home would cost $100k-$150k is pennies even for a renter in California where typical 3/2 homes are $300k-$500k.
Also I guess we should say no RENTER, but maybe a LEASE/OPTION as I would agree no one would just want to rent a house that expensive for a year and move unless it is some big wig looking for a short term home his fmaily can be ‘comfortable’ in.
I remember going to a meeting of sorts a this huge mansion in San Antonio. I would guess in the $1mil-$2mil range. As I was leaving I mentioned to the owner that he had really interesting house. That is when he said, “Oh this is just a temporary rental while our dream house is being built outside the city limits.”
:o Must be nice!
Guys,
Lets not jump to conclusions. I owned a property in Dallas that I rented for $2100 per month and it rented in a week after being put on the market. Different locales, different requirements. The fellow that I rented it to still lives there. He’s just not paying rent any more. 
Wilson
PS - Pixeltrade, this is a pretty high dollar property for a first investment. Especially if you are limited on funds. A couple of months without a tenant can sink you unless you have the funds to cover the mortgage.
thank you for your response. i live in ny so the property value is very high. after hearing some of the feed backs its seems this property would be hard to rent. i guess it would be very important to know what i would like to do with the property instead of just worrying about getting the money.
i still do not know what source i could use to get the finance for any property.