Posted by jeff c on March 26, 2006 at 08:13:05:
the interest rates are not as important as cash flow. this sounds like a good move. check the closing cost items. i have seen a few 80/20 with more closing cost than if 5% was put down. if money comming out of pocket can be put on principal instead of junk fees then that would be a better move. good luck
Looking for knowledge. - Posted by Gene
Posted by Gene on March 25, 2006 at 16:11:27:
OK. Here is the deal.
Buying first investment property(SFH 3x2x2). (Remember this will be NOO). Property Appraised @ 87k, offered 76k(this was excepted) Looking for the right financing …so far, 80/20 with 8.125 on first and 9.0 on second. This seemed a little high with a FICO @ 715. This property is a HUD/FC. Will have to paint and replace carpet for around 4k. Rent in area is 1,000/mo. Any suggestions? Thank you in advance. I appreciate your time!
Gene
3 Q’s - Posted by Joe Kaiser
Posted by Joe Kaiser on March 26, 2006 at 06:53:09:
Why is this a good deal?
How does this property fit into your overall investment strategy?
Who will manage it?
Joe
Re: Looking for knowledge. - Posted by John
Posted by John on March 25, 2006 at 19:54:20:
Sorry somehow it posted before I finished, Probably operator error.
Rates are higher for NOO than OO and 100% LTV makes more risk for lender and higher rates. The last one I did about 2 weeks ago was 8.25 & 9.75 my FICO 710 so you did better than I. Sounds like it will cash flow well for you. Good First investment
Re: Looking for knowledge. - Posted by John
Posted by John on March 25, 2006 at 19:47:43:
It seems about in line to me.
Another “Q” - Posted by Rick Harmon (CA)
Posted by Rick Harmon (CA) on April 04, 2006 at 21:33:57:
Hey Joe…maybe add: “And why do you want to own this property?”