Posted by Jack on November 12, 2006 at 15:58:16:
It really depends on what the real market value of the house is and how low you can get the price and probably some other factors.
Buying a house to rent - Posted by Mike
Posted by Mike on November 12, 2006 at 13:27:07:
Hello again. I live in Myrtle Beach S.C and was thinking about buying another house to rent. The dealers are offering what seem to be good deals,reducing the price by about $30,000 on a new home and offering good mortgage rates. Is this the time to buy or should I stay on the sidelines and wait??
learn the basics - Posted by Gene
Posted by Gene on November 13, 2006 at 16:59:42:
I would recommend reading a few “basic real estate investing” books. They are cheap online or free at the library, after reading a few books you will have a much better understanding.
IMO there is a reason that builders are dropping thier prices so steeply…because they cannot sell them otherwise.
Re: Buying a house to rent - Posted by Valerie
Posted by Valerie on November 13, 2006 at 15:56:30:
Mike,
What kind of rate are they offering you?
Are they paying allowable closing costs?
Normally, new homes are to expensive for rental
income. I am a lender/broker and can orginate in SC.
Let me know if I can help.
Valerie
Re: Buying a house to rent - Posted by Clint
Posted by Clint on November 12, 2006 at 19:52:07:
Buy low, rent high. Or something along those lines. Expect to put down about 10% of purchase for non owner occupied.
Figure a 10% vacancy rate.
What will your mortgage be?
What is the rental market in Myrtle Beach like?
Is this a condo/vacation type on the water. They aren’t reducing the price 30K for grins and giggles…
They obviously can’t sell an over priced property.
You may have an upper hand, and be able to get them down further!
Expect your mortgage to be 1% higher for a non owner occupied.
How about renting your current house out and moving into the new one?
Just some things to kick around…
Best of Luck!
Clint