Today I talked to my attorney about closing costs for a 5 family I am purchasing for no money down. It turns out that the closing costs are gonna cost me about 2000 when all is said and done. Attorney costs, titel fees, research, mortgage recording etc.,etc. Hardly a no money down deal even though 2000 is not much money I have to put a little bit into the property to get it rented. Anyway I guess my question is, would it be better to do a lease option do the work on the property to get it fully rented and then go for the closing? I need to do this for as little out of pocket costs as possible. Creativity is what I am trying to do. The property will have a great positive cash flow when fully rented but until then I am chugging along on empty. ideas?
It sound like maybe you should option the property and try to flip the deal to an investor that has some money. The title companies here charge 300+ for escrow fees for each side. They charge about 1% of the price for title insurance. Then there are document prep fees.
You can use a service that provide an abstract or title report. Here it costs $30-$100. You can get a paralegal or experienced investor to help you with documents.
I don’t like to put money into rehab work where I do not control the title. Money at risk just like not knowing of the possible problems with title.
Hi thanks for the response. The one good thing about this property is I can pay off the mortgage at anytime for a nice discount of course. I dont have the money to pay it off. The property has a tax assessment of 45000. When fully rented I am sure it could get about 60k or more. Even at 45k as a sale price when I am ready to sell is a good deal. I can payoff the mortgage and fix up what I need to fix up, get the place fully rented for about 25k total. The rental income per month would be approximately $1500 gross.