buying a rental property - Posted by Tom Reilly

Posted by Jim C. on February 28, 2002 at 11:15:15:

You could get a conventional mortgage for 80% and have your very motivated seller take back a second mortgage on the other 20%. Also make it the sale contigent upon finding a renter, so at closing you could utilize the tenants first months rent and secutity deposit towards the down payment of the conventional loan and the other closing costs.

buying a rental property - Posted by Tom Reilly

Posted by Tom Reilly on February 28, 2002 at 09:37:48:

I am looking at a rental property with an asking price of 99,500. The current owner has the property paid off and has done numerous improvements. I am looking for a way to purchase the property with little or no money down, as quickley as possible. The home owner is very flexible, but is looking for a nice down payment to cover his expenses of renovating the house.

Re: buying a rental property - Posted by JoeS

Posted by JoeS on February 28, 2002 at 14:07:04:

You could try this, if the seller is motivated. Buy it for $99,000. Have the current owner take out a loan on the place for whatever he needs as downpayment. He then sells it to you and takes back a note with you. He can do a wrap with you thus covering both mortgages, or you can have 2 payments. The place has to appraise out and all the numbers have to add up for cash flow, but it works!

Re: buying a rental property - Posted by Shawn

Posted by Shawn on February 28, 2002 at 11:42:30:

What type of rental is it? SFR, Duplex, Triplex, etc…? Have you done an analysis of the property? income/outgo? What kind of debt will it stand? What is your credit like? and what payments can you afford? There are many ways for the seller to cash out even if you have imperfect credit. Before I can show you how to structure it, I need this info. If you are motivated and the numbers work, the seller can get all his money at the close.