making money on my first deal - Posted by eddie


#1

Posted by John OH on November 02, 1998 at 23:44:13:

Don’t forget points and closing costs. I just refinanced 3 properties and ended up with 7K wasted in them.


#2

making money on my first deal - Posted by eddie

Posted by eddie on November 02, 1998 at 21:46:51:

Whats up guys
I have this house Im buying for a rental and i will have a cash flow of 375 mth the house is worth 65,000 i will buy it for 55,000 can I borrow against that cash flow like an extra 30,000 30yrs at 8% for about 300 mth
still leaving me 75 mth cash flow.
can anybody answer this for me

thanks edy ny


#3

Re: making money on my first deal - Posted by charles(delaware)

Posted by charles(delaware) on November 02, 1998 at 23:06:30:

Kathy is wrong. Home equity loans are for owner occupied homes not rentals. Getting financing for rental property is harder than for a home you live in. typically, you can get financing for 75% of the purchase price or the appraised WHICHEVER is lower.

I am not an expert at this. I have financed just one rental so far with a 65% cash out financing. I bought it low, put money into it then refinanced it. The paperwork and loan was a hassle.

Try to get owner financing or talk to a mortgage broker who specializes in investor type property.

Know your financing options before you buy or you will regret it as I did with the extra headaches.

I eventually got all my cash out and 8% 30 year financing yielding $225 per month positive cash flow which I am pleased with.

GOOD LUCK!


#4

Re: making money on my first deal - Posted by Kathy

Posted by Kathy on November 02, 1998 at 22:43:10:

Far as I know, you can get a second mortgage of 70% on the equity. That’ll get you $7000!


#5

Re: making money on my first deal - Posted by William

Posted by William on November 05, 1998 at 19:22:04:

I have gotten several Home Equity loans on renatl properties. There are some lenders out there will do it.