There are numerous properties in the Houston, Texas area that are selling at least 50 % below value.
Is there any financiing method in which I could purchase a property that is worth 110,000 for 47,000 do 10,000 in repairs and clear 12,000 to make interest payments while the proerty sells are unitl it is rented?
Bacially 57,000 needed for the house and 12,000 additional .
STEP 1 - Buy at 50% ARV - generally on private money or HML.
STEP 2 - Do rehab.
STEP 3 - Refinance. Although some will say to refinance to 100% I would not suggest that in today’s market. It is also tough to do right now. Better yet, refinance at 75%-80% with standard non-ownwer occupied financing. Pocket Cash.
STEP 4 - Rent home out for long term cash flow and appreciation.
$15k rehab, mortgage and holding costs.
$62k total invested
$77refi loan (70%@30 years@8%)
$15k cash out (NOT TAXABLE!!!)
This would be a bit thin in my book. The mortgage in this situation would run $565 P&I so you would have to get enough rent to make that work. It also would depend on if you have a friendly enough lender to give you terms like that, but it is quite possible.
Have you considered a HELOC? The money will be there if you need it, the fees are low, and you can go liquid easy and fast. You still realize your profit when you sell and you dont have to go 100% to cover carrying cost and rehab.
Depends on the lender but at least a 680 for stated. Six months PITI for reserves. Stated may require landlord experience of two years. Eac h situation is different. There are still plenty of good investor programs out there.
If you are going full doc then 8-9% is pretty high. Mid to high 7's is what you should expect.
This is probably true. However, without knowing all of the parameters it is a little difficult for any of us to make a truly educated decision. Quoting a rate at this point is truly a guesstimate.
I would suggest that you check with a few different people. DO NOT let every one of them pull your credit. It sounds like you may have already had the opportunity to review it. Inform them of any and all issues that you may have. With a 630 there is something that is either occcuring or has occured. This is what will correlate into a rate and program.