New Rental Purchase

General Real Estate Investing
1

I’m a newbie who finally decided to come out of long-term lurking.

I am purchasing my first rental property where the owner will finance for 50K. After signing the contract, he’s going to hand over the deed to the property. My question is, after I have the deed, should I obtain a HELOC or a new mortgage of 60K to pay him off and minor repairs? Are there other loan options for deeds?

The home is worth 90+. The assessed value states 122K on county property appraiser’s site.

2

What you should do depends on your plans for the property. Do you plan to keep it for a rental? Are you planning on rehabbing it and selling it? What will the repairs cost? What are the gross rents? What is the interest rate and other terms on the owner financing. We can’t help you without this information.

Good Luck,

Mike