I was wanting some information about getting a loan for a rental property. Is there any tricks of the trade on getting 100% financing fo an investment/rental property or do you always have to put 10% down.
Can the seller pay closing cost on an investment property loan?
Is there any tricks of the trade on getting 100% financing fo an investment/rental property
Buy at a HUGE discount to market value and get the financing from a small local bank.
Good Luck,
Mike
Currently I am able to finance 80% of the after repaired value (ARV) of a rental house. What that means is that I find a house for sell for $60k that requires $10k to fix it up. Every other house just like it in the same neighborhood sells with no duress for $100k. I can finance the $60k and the $10k fix up and the closing costs up to that $80k number.
I am closing on one this afternoon that happens to be with a small local bank, but the financing is out there as long as you buy at enough of a discount.
The deal I have has an ARV of $124,000, the purchase price is $65,000 with a fix up cost of $5,000. That is a cost of $70,000 plus about $6,000 in closing costs. I will be in the house for $76,000 with a PITI of $650. The neighborhood rents for $1300. I plan to have the fix-up done in 3 days. I will have it rented 2 months before I owe my first payment.
Bluemoon06,
Where do you get your financing? Local bank? Mortgage broker??
I need to know this bank. :beer
Yes I am using a local bank.