I agree with Funder. I have a rental property that I am closing on the sale today. It was my primary residence until I got maried and my wife and i bought a home in another city. I thought it would be great to keep as a rental and make some extra money. I rented it out to a woman that i work with. Talk about a huge mistake. I did not do a credit check. I did not make her sign a lease, I did not ask for a deposit. And before y’all blast me for being such and idiot let me tell you I ALREADY KNOW. Right after she moved in her white trash sister moved in with her three kids. I mentioned it to her and she promised me it was just temporary. Her sister then started running a day care center out of the house. And I don’t mean that metaphorically. I mean it literally. The lady who worked in my office was laid off due to the mortgage crunch, and they promptly moved out and when I got in their I was shocked. Gum was stuck on the walls. Candy was stuck in the carpet. Windows were cracked. It was a total nightmare. I had to re-do the entire interior. So please take mine and everyone else’s advice whjen they tell you SCREEN YOUR TENANTS. It will save you so much money. Especially on a four-plex.
Can we say it anyway, just for practice?
“I don’t care who you are, that right there is funny!” Larry the Cable Guy
Keith
LTV values are certainly not what I expected.
Most lenders are averse to 90-10 and the interest rates hover around 8.5%,but the property will still cashflow +ve even at this rate.
Interest rates and loan packages are better if I were to fix it up and sell it, even a 90-10% loan is available but not when you want to rent it out.
I feel crushed but hey what the heck…i have to think and act like Robert the Bruce!
Just have to talk to more lenders now.