I have one rental property and reside in a home that will be rented out come May. I need to buy another primary residence in May due to a move.
I have found a propery that seems like a GREAT deal (based on comps & other research)
I have many options on how to structure this deal…but am not sure what would be the most advantageous.
To know that, my future goals would be important (to buy and flip 5 properties this year NET profit 10k min. on each
here is the deal:
high comp @97k
Low @ 91K
sellers have said they are willing to do a second note for any amount above 60k (they WANT to payoff the loan and get VA cert back and have a little cash in pocket & owe 55K) They have a horrible agent they are trying to fire who has done NOTHING…(so the agent commision may or may not be a factor)
they have VERBALLY agreed to a selling price of 73 and paying closing costs…i think they may even take less
Oh! and the house is currently rented at $750.00
I would like to flip it as soon as it makes sense to do so. the lease has 6 more months left and the rehab is carpet & paint. There is a house on the street same size asking 107k
I dont know how to structure the loan so that it positions me best for more buys. I don’t have cash for deals…that might be important to know
owner finance?
Rhab allowance?
can I walk away with cash on this one and pay them some and keep the rest? Like a decorating allowance after the loan of 65k?
They even said they would take a note behind the scenes for the remaining. Is that legal? Doable?
They are VERY VERY motivated (Job LOss & trying to buy another property.
The other thing that strikes me as odd is the loan officer who is working this told me that we will have a hard time getting this loan with STATED income and a 640 credit score. She also said that we cannot use 20% from them in the form of a note in order to change the LTV from 100% to 80%
I thought I had read enough…but, as I’m sure many of you way ahead of me already know - when you get thrown in the fire,the true test begins!
This has been my dream since BEFORE There were flipping shows (about 12…SERIOUSLY! - I’m a 33 year old female I’m finally getting the nerve and am stuck already!!
I’m not trying to get rich, I just want to make a living from doing what makes me GIDDY!!
Please help is you have time, it would be greatly greatly appreciated.