Posted by Michael Morrongiello on March 06, 2000 at 17:05:47:
Yes it would be feasible for you to purchase the adjoining home and secure its purchase by a “blanket” lien mortgage that would secure BOTH your primary dwelling and the other rental home. You might have to contribute a small amount of cash to make the deal happen, however.
As for the $76,000.00 representing an 80% (ITV) investment to value, that is questionable since 80% of the $90,000.00 estimated FMV for the (2) two homes would be $72,000.00 not $76,000.00
In order to mitigate the discount of the paper and to have an optimum interest rate on that blanket mortgage note to be created to achieve that, I would need to know a lot more about your credit and employment background? An interest rate of 10.50 % amortized over 30 years would produce a monthly installment of $740.94 based upon $81,000.00 being financed by the seller. (this limits their starting LTV to 90% of the $90K combined collateral values). This might work.
Conceptually the deal looks do-able.