creative financing - Posted by BOBBY
Posted by BOBBY on January 15, 2005 at 15:16:24:
a real estate partner and i want to buy a 4 unit building (non-owner occupied) in an up an coming neighborhood. the listing price is $399,000. and we like it alot. im looking into creative financing programs through various mortgage brokers. we plan to tap into a vacant lot,which we bought under a separate LLC, that has appreciated some equity ($15,000) to go towards a down payment. i personally have 3 other investments ( a owner occupied 2 flat, a 2 bedroom condo and a vacant lot), my partner also has a condo. we did some number crunching and found that our monthly “nut” would be around $2,700 per month (P+I) if we put down 5% of 399,000/30yr/6% + property taxes +i nsurance + maint./marketing. we can only get 525.00 per month for all four units. so our rental income is much lower than our monthly nut. we know this property is a steal and we would eventually convert to condos. one thing is to find another partner to put more down payment so that our rental income at least matches out monthly expense… do you have any ideas of aquiring this property?