From your scenerio the only thing I can see that would be beneficial to both of you is for you to assume her mortgage and the two of you, if her credit is good enough, start investing together.
You get a better home and she can move into one of the deals that you buy unless you decide to live together. In the meantime, use the 5,000 for the repairs on your home and sell or lease option your home. Whatever the cost for repairs, add another 1,000 or so and let that be the down payment for the new leasee in your home.
Is there a DOCTOR in the house??? - Posted by Heather D
Posted by Heather D on February 06, 2002 at 17:22:21:
Hey all,
Here’s the situation:
Best friend wants to sell her house in order to move into a “bigger better”.
Hoped to make about $5,000 on it (forgot to ask if that was over and above the realitor commission if she chose to use one which I AM SURE she would)- also forgot to ask how much of that she would need for the DP on the new house. Live and learn…
House appraised at $125,000 this past summer for her refi.
She is a Loan Officer.
She owes her total mortgage of $113,000 (no equity)
Monthly PITI $725
Would make a horrible landlord and doesn’t want to be one.
3 houses on her street (small cul-de-sac) have sold in the last year - $116,000 2/01, $114,000 7/01, and $112,000 10/01. Haven’t looked up the rest of the developement yet (built in 1996). Although, I doubt they are much better b/c the area that we’re in is under heavy development!!! Why pay the $ for a used house when you can get a brand new one for the same amount???
Current mortgage is assumable.
Fair market rent (FMR?)is about $1,200
Could use lite cosmetic work, nothing big.
She has no debt, other than the house.
Now here’s my situation:
Have BIG debt. (monthly min payments are about 26% of gross montly income not including mortgage)
w/ our plan on our current income we will be debt free in 2 years, again not including mortgage.
Have good/-A credit.
Own my own home but her’s is better and wouldn’t mind living in hers and L/O mine (can’t straight out rent mine b/c my PITI and Homeowners dues bring it right to the brink of the FMR).
Can come up with about $5,000 in a straight loan.
Need about $1,000 to redue my downstair’s floor,puppie decided to dig to china, LOL, and has some water stains from previous water heater leak in attic, no structural damage.
Ok, now I know there are probably a million and one ways this could work for both of us but not sure which would be the best for a newbie. I would really like this to be my first deal, given our relationship.