Posted by Matt on February 22, 2002 at 23:29:21:
I don’t live in the home, no. It was purchased to be a rehab/resell but the current market conditions fall a little short of our original comps and make the margin a lot lower than we anticipated. Rather than lose the difference, we’re now thinking of holding the property as a rental producing around 200/mo positive cash flow and leveraging the remaining equity and cash in hand to purchase a 4 flat.
As far as working with a lender to do a second on the property… well I work with a portfolio lender now that I have a few lines of credit through and while I would normally just ask his opinion on the concept as stated I would rather not scare him into thinking I’m leveraging his collateral to 95% or above. I wouldn’t blame him for being nervous but I’d rather not jeopardize our current lines for the sake of this new one.
It is a single fam residence and as I said before it is currently free and clear (save a current 24k line we have on it that will be paid off when we secure long term financing for it.)
I suppose if I could get a different lender to float a 90% to total value mortgage on the property I could always pull the remaining $ I was looking for from another property. Was hoping to use this one for the whole deal on another purchase…
thanks for the info tho.